India's "Make in India" Initiative and Israeli Tech

PM Modi's 2026 state visit to Israel marked a turning point — the two nations formally upgraded ties to a "Special Strategic Partnership," with co-development and co-production at its core. AI, semiconductors, and cybersecurity are the priority sectors, directly fueling India's Atmanirbhar Bharat and Make in India agendas through real technology transfer.

The strategic upgrade

On February 26, 2026, Prime Ministers Modi and Netanyahu elevated the bilateral relationship to "A Special Strategic Partnership for Peace, Innovation, and Prosperity." This is not a symbolic gesture — it reflects a fundamental restructuring. India is no longer simply a buyer of Israeli technology; it is now positioned as a co-development partner, a manufacturing base, and a strategic market for exits.

The leaders acknowledged that Indian and Israeli capabilities are deeply complementary: Israel brings technology and innovation firepower, India brings talent, manufacturing scale, and entrepreneurial energy. Together, the partnership targets India's "Viksit Bharat 2047" vision of becoming a developed nation.

Critical and Emerging Technologies (CET) initiative

A new initiative on Critical and Emerging Technologies — led by the National Security Advisors of both countries — was launched to synergise strengths in AI, quantum computing, biotechnology, semiconductors, and space. This is the first time the CET agenda has been elevated to an NSA-level bilateral mechanism, signalling that technology collaboration is now a national security priority for both nations.

AI and cybersecurity cooperation

Both nations signed an MoU on AI cooperation and a Letter of Intent for establishing an India-Israel Centre of Excellence in Cybersecurity in India. The cybersecurity roadmap includes human capacity building, AI-integrated security, applied research, Security by Design principles, and regular joint tabletop exercises. For Israeli cyber and AI companies, this creates a structured pathway into India's public and private sector markets.

R&D and innovation funding

The India-Israel Industrial R&D and Innovation Fund (I4F) — jointly implemented by India's Department of Science and Technology and the Israel Innovation Authority — received renewed commitment with enhanced outreach to industry. The India-Israel Joint Research Calls (IIJRC) program saw contributions increased from $1 million to $1.5 million per side, and the Joint Commission on Science and Technology was elevated to Ministerial level. Both sides agreed to explore "Tech Gateway" mechanisms for collaborative R&D, technology validation, pilot projects, and joint development.

Defence co-production

Building on the MoU on Defence Cooperation signed in November 2025, the leaders provided a vision and roadmap for future defence cooperation. The emphasis is on co-production and co-development — not just procurement. For Israeli defence tech firms, this opens a structured pathway into India's massive defence modernisation program through joint manufacturing rather than export.

Trade, investment and FTA

The Bilateral Investment Agreement signed in September 2025 and the formal launch of Free Trade Agreement negotiations signal a new era for cross-border business. The leaders also agreed to explore linking India's UPI with Israel's fast payment system and to expand direct air connectivity between Tel Aviv and major Indian cities — both essential infrastructure for scaling bilateral trade.

Agriculture and water technology

With 35 centres of excellence in agriculture already operational and 8 more being set up, over one million Indian farmers have been trained. A new India-Israel Innovation Centre for Agriculture (IINCA) was announced, along with 20 Joint Fellowships for agricultural research. A Centre of Excellence in Fisheries and Aquaculture is also planned. For agritech companies, this is a proven, scaled entry channel into one of the world's largest agricultural economies.

What this means for businesses

This partnership upgrade creates tangible, funded pathways for Israeli tech companies to enter India — not through traditional export, but through co-development, joint ventures, and technology transfer. The priority sectors (AI, cybersecurity, semiconductors, defence, agritech, water) align directly with India's "Make in India" spending priorities. Companies that position themselves as co-development partners rather than sellers will find the most traction.

Bottom line

The 2026 state visit turned "Make in India" from a slogan into a bilateral operating system. With 16 signed agreements, new co-development funds, and sector-specific frameworks in AI, semiconductors, cybersecurity, and defence, the infrastructure for Israeli tech companies to build in India is now institutional — not opportunistic. The companies that move first on co-production and technology transfer will define the next decade of the corridor.