Indian Prime Minister Narendra Modi will visit Israel on February 26, marking his first trip since 2017. This latest visit could be a significant and historic moment for India-Israel trade relations, and for multiple reasons, with the Indian PM's visit coming at a curious time in regional events vis-à-vis Iran and a potentially worse conflagration than the two had in 2025.  With a meeting with Prime Minister Benjamin Netanyahu expected on his arrival and an address to the Israeli parliament on the agenda, the significance of Modi’s visit goes far beyond diplomatic courtesies this time around and could signal a pivotal shift in the world's largest democracy as it continues to steer a curious course in international relations without trying to alienate the United States or Russia.

This latest trip could have crucial implications for security cooperation, trade expansion, and technology exchange between the two countries and irk other regional countries, including Pakistan and Iran, the latter of which is ramping up for war with Tel Aviv and Washington. At the top of the agenda, according to sources seen by IntelliNews, the India-Israel Free Trade Agreement, which began on February 23 in New Delhi, is expected to conclude on February 26. The Terms of Reference, signed in November 2025, established a formal framework for discussions aimed at expanding bilateral trade and deepening economic cooperation.

Clearly, given the progress on the FTA front, India and Israel are expected to ramp up their cooperation, although this could extend well beyond trade into security and defence, with both countries looking to reinforce their economies and defensive capabilities amid military threats on multiple fronts.

Also, given India’s longstanding tensions with Pakistan, it makes sense for the Modi administration to reinforce its defences in the case of further flare-ups. This would mean approaching key arms suppliers, such as Israel, for further imports. Israel has become a crucial arms supplier to India in recent years. Something that India makes great fanfare and noise about, with sales accounting for 14% of India’s arms imports from 2015 to 2024 alone. With the Indians becoming increasingly voracious buyers of Israeli high-tech goods.  According to data from the Stockholm International Peace Research Institute (SIPRI). This means that Israel is the third-largest arms supplier to India, behind Russia (46%) and France (22%), putting it ahead of the United States (9.9%) and its former colonial rulers, the United Kingdom (2.6%). It's quite an achievement for the relatively small country's exports and to have such a substantial long-term buyer. 

Defence is key

Israel has become a major and increasingly important defence supplier to India in recent years. Astonishingly, from 2020 to 2024, India accounted for 34% of Israeli defence exports, according to SIPRI figures from last year. With total Israeli defence exports during this period reaching approximately $60.3bn, India imported an estimated $20.5bn in defence systems over the five-year period. Reports from India also indicate that the Israel-India arms trade has not slowed in 2026; it is likely increasing, and Modi's visit would confirm this in a few days' time, once details have been fleshed out. Deals closed since the beginning of this year alone total $8.6bn, though this figure includes production by Israeli subsidiaries and joint ventures in India, indicating alignment with Modi's "Make in India" and "Self Reliance" initiatives, Globes noted in one of its Hebrew language reports.

India is reportedly preparing to deepen strategic ties through defence deals estimated at approximately $10bn over the coming years, with a particular focus on air defence systems. Joint development in ballistic missile defence and laser defence technologies is on the agenda, alongside a potential memorandum of understanding to formalise expanded security cooperation.

Still, with the FTA negotiations underway, Modi’s visit could have far-reaching implications not only for the defence sector but also for bilateral trade as a whole. Total trade between India and Israel has proven substantial, with bilateral trade reaching approximately $5bn in 2025, according to official government data. During this time, Israeli exports to India have grown roughly 50% over five years, making India Israel's second-largest Asian trading partner. 

While most Indian goods entering Israel already enjoy customs exemptions, potential regulatory relief for Indian workers and enhanced defence trade provisions could deliver substantial added value. This could be the law of unintended consequences, though, as other Western countries have discovered, without a numbers cap, the small country could have to contend with increasing numbers of low-cost workers, massively undermining those workers already overstretched with rising costs. 

"The visit marks a shift from viewing the relationship as 'security-only' to something broader, even if the regional security equation is changing," Dr Oshrit Birudkar, senior researcher at the Jerusalem Institute for Strategy and Security and CEO of Indivade, wrote in a public statement. "From the Indians' perspective, the whole idea is that there will be a dialogue with a manufacturing company in any field only if it is willing to manufacture in India."

India’s Ambassador to Israel, J.P. Singh, echoes Birudkar’s assessment. Singh told The Jerusalem Post that talks between Modi and Netanyahu are set to be “very free-flowing” and will cover “bilateral, plus regional and global issues.”

Israeli Ambassador to India Reuven Ezer supported this view. Ezer stated on X that the visit will significantly advance relations, enabling the countries to engage in more sensitive projects and develop joint technological solutions to address global threats.

India and Israel both seem to have concluded that they will benefit significantly from deepening ties. While security remains at the forefront of both countries’ agendas, a new FTA and further cooperation, particularly on the technological front, could enable both countries to reap greater economic benefits.

Not everyone is sold on India

However, not everyone appears impressed.  "Hope they are taking all the necessary precautions," James K wrote online, adding, "Anyone who has ever done business with Indians knows that for money Indians have no problem lying, cheating, and transferring information and technology to anyone who will pay, including the Chinese, Iran, Qatar and who else. Zero values ​​one hundred per cent greed." He added, "Israeli politicians don't have a drop of business experience, they all got to their positions by licks to the leader (and his wife)..."

Modi's upcoming visit has also caused a ruckus with left-wing politicians in the country. Left‑wing parties and allied opposition groups have framed Modi’s visit as being aligned with a right‑wing, pro‑Israel foreign‑policy axis, which they see as undermining India’s traditional non‑aligned stance and tilting toward a government widely criticised for its handling of Gaza and the occupied West Bank.

They have staged demonstrations, vigils and public statements demanding that the visit be cancelled or at least recalibrated to reflect India’s historical sensitivity to the Palestinian cause. 

In Israel, opposition leader Yair Lapid and his allies have threatened to boycott Modi’s planned address to the Knesset, Israel’s parliament, unless Supreme Court President Isaac Amit is formally invited to the special session, according to public comments from Lapid and opposition parties. Netanyahu’s coalition has clashed for months with senior judges over a contested judicial overhaul, and Justice Minister Yariv Levin has resisted recognising Amit’s authority, opposition politicians and legal analysts say.

Amit has been excluded from several state ceremonies in recent months. Opposition lawmakers say they will not attend a special sitting for a foreign leader if the head of the Supreme Court is kept away, calling the move a slight to Israel’s institutions.

"Lapid, Gantz, Eisenkot, Liberman, and Golan may think they are clever by boycotting Modi's talk, or that they will somehow make points with Israeli voters by a boycott. They aren't, and they won't. They only damage Israel, and that is something that should not be forgotten," Larry Goldstein wrote on social media.