PM Modi’s ‘historic’ 2-day Israel visit commences today:Signing of agreements becomes even more important in light of continuous fall in trade

Prime Minister Narendra Modi’s 2-day ‘historic’ visit to Israel commences on Wednesday, 25 February, 2026. The leaders of both the nations are expected to sign numerous agreements in the field of defence, artificial intelligence, cyber security, etc. In this scenario, let’s check how much trade these two countries are involved in. India-Israel trade size tumbles 43% YoY in FY25 as compared to the previous year Aggregate trade between India and Israel fell over 43% Year-On-Year (YoY) to ₹30,711.33 crore in FY25 from ₹54,081.05 crore in FY24. Jerusalem accounted for 0.31% of India’s total global trade of ₹98,01,621.90 crore in fiscal 2025. This share has also shrinked consecutively in last two years. Trade size shrinks in last 5 years: The size of bilateral movement of goods and services between the countries has also shrinked during the 5-year period from FY21 to FY25. India has positive trade balance with Israel Nevertheless, New Delhi has a positive trade balance with Jerusalem. Former being net exporter of goods from the latter. India’s exports to Israel exceeds imports. The Jewish country is one of those nations, with which India has a positive trade balance. New Delhi’s exports to the Jewish country halve in FY25 as compared to previous year India’s exports to Israel halved to ₹18,169.79 crore in FY25 from ₹37,482.05 crore in FY24. The latter accounted for a 0.49% share in the former’s total exports of ₹37,03,412.02 crore in fiscal 2025. Exports of goods and services from New Delhi to the Jewish country have also largely reduced in the last five years. India’s imports from Israel fall 24% YoY in FY25 New Delhi’s imports from Jerusalem fell 24% YoY to ₹12,541.54 crore in FY25 from ₹16,599.00 crore in FY24. Out of the former’s total imports of ₹6,098,209.88 crore, the latter’s share stood at 0.21% in FY25. Share of Israeli imports to India’s total trade has continuosly fallen in last five years. What India exports to Israel? India’s primary exports to Israel are led by polished diamonds, precious stones, refined petroleum, electronics, and machinery. Other significant exports include organic chemicals, textiles, agricultural products (spices, tea), and defence equipment/components What New Delhi imports from Jerusalem? India primarily imports high-tech electronics, defence equipment, agricultural fertilizers, and rough diamonds from Israel. Key imports include advanced defense systems, communication devices, medical apparatus, and chemicals. Israel serves as a critical supplier of military hardware and technology for India’s defense and agricultural sectors. Recent Development: India Israel signed ‘Bilateral Investment Agreement’ in 2025 Recently, India and Israel signed a new agreement to make it safer and easier for companies to invest in each other’s countries. What’s was the agreement about? This agreement, called a Bilateral Investment Agreement (BIA), was like a set of rules that both countries agreed to follow. It’s designed to: Protect Investors: Make sure investors are treated fairly and their investments are safe. Ensure Transparency: Make sure the rules are clear and easy to understand. Compensate for Losses: Provide compensation if investors suffer losses due to certain events. Why was this Important? More Investment: The agreement was expected to encourage more companies to invest in both India and Israel. The total investment between the two countries was $800 million (₹7,200 crore) in September 2025. Economic Growth: More investment means more jobs and economic growth for both countries. Stronger Relationship: It showed that India and Israel were committed to working together and building a strong economic partnership. India’s Reforms India’s Finance Minister had mentioned that India had made many changes in the last 10 years to make it easier for businesses to invest in the country. This had helped India become one of the fastest-growing economies in the world. Areas of Focus: Both countries aim to work together on: Fintech Innovation: New technologies in finance. Infrastructure Development: Building roads, bridges, and other important projects. Financial Regulation: Making sure the financial system is stable and well-regulated. Digital Payments: Connecting digital payment systems. Cybersecurity and Defence: Protecting against cyber threats and working together on defence technology. Both the global leaders are expected to sign fresh agreements in these two fields this time also.