Cooperation between Israel and India has the potential to be “a win-win partnership,” India’s Commerce and Industry Minister Piyush Goyal told The Jerusalem Post on Sunday, just before the conclusion of his first visit to the Jewish state.
Goyal was at the head of a delegation of about 100 representatives from approximately 70 companies and senior business leaders in Indian industry and held meetings with senior Israeli business leaders as well as Israeli political leaders, including Prime Minister Benjamin Netanyahu and Economy and Industry Minister Nir Barkat.
“It was very warm, very welcoming, and focused on outcomes,” Goyal told the Post of his meeting with Netanyahu.
“We believe this is a partnership destined for much bigger things. The prime minister’s message was clear: we will work together to expand our defense relationship and leverage the strength of Israeli innovation, talent, and skill, along with what India can bring – both for manufacturing innovative products designed by Israel but made in India for the Indian market, and for bringing down costs significantly. This will help Israeli innovation reach world markets, as well as bring down costs for Israel. It can be a win-win partnership.”
Defense manufacturing could be area of Israel-India cooperation
Thousands of Indian students arrive in Israel each year to expand their education, living here alongside the thousands of Indian industry workers and caregivers who make Israel their home.
Beyond this established people-to-people connection, Goyal sees vast untapped potential for deeper collaboration.
“I am most excited by innovation and products of new-age technologies,” he stated. “Take, for example, applied AI. It is something that India, which produces the highest number of STEM graduates at 2.4 million every year, can really add to the innovation that is happening in Israel, and we can help to implement these ideas.
“Similarly, defense manufacturing could be another area where we work together. Infrastructure is another area where Israel will need more modern infrastructure, with which we can partner. We are exploring whether Indian companies could help work together with Israeli companies on the Tel Aviv Metro, for example.
“There is a lot of potential. The air is pregnant with possibility.”
The delegation’s visit began with the official renewal of free trade talks with India, with the signing of a memorandum of understanding last Thursday to strengthen existing economic ties between the two nations.
Israel and India have been negotiating a free trade agreement for 15 years, with the renewed initiative under development for the past few months.
'A new chapter in trade relations between Israel and India'
“Today, we are opening a new chapter in trade relations between Israel and India,” Barkat stated after the signing.
“The official renewal of negotiations on a free trade agreement is a strategic achievement that strengthens the Israeli economy and creates tremendous opportunities for our exporters and industrialists. India is an economic powerhouse with immense potential for cooperation, and the personal and direct ties built between the countries enable us to advance agreements that will generate growth, innovation, and jobs for Israelis.
“This is another step in building a strong, competitive, and globally open economy.”
The visit also follows the November signing of an MoU to enhance defense, industrial, and technological cooperation at the annual meeting of the Israel-India Joint Working Group, led by Defense Ministry Director-General Maj.-Gen. (Res.) Amir Baram and Indian Defense Secretary Shri Rajesh Kumar Singh.
Defense was also highlighted by Goyal, who explained, “Israel and India both share a common fight against terrorism,” referencing the 2025 Pahalgam attack on tourists by at least three armed terrorists near Pahalgam in India’s Jammu and Kashmir region, in which 26 civilians were killed on April 22, 2025.
India, with roughly 1.4 billion people and the world’s fifth-largest economy, represents an important market opportunity for Israeli exporters. Israeli trade officials believe a free trade agreement would give Israel significant advantages by lowering tariffs and addressing India’s trade barriers.
In 2024, Israel sold around $3.1 billion worth of goods and services to India, making it Israel’s fifth-biggest export market. This trade volume has increased by 56% over the last four years, maintaining growth even during the wartime period.
It was the first time visiting Israel for Goyal, but he was effusive in his praise for Israel and assured that it was his “first visit, but not my last. I have had lovely experiences, from the Old City and the Western Wall in Jerusalem to the Indian Hospice. We have lots to do together, and I am looking forward to a wonderful partnership with Israel.”