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India–Israel Strategic Reset (Feb 26–27, 2026): Defence, AI, and Trade Convergence

India PM Narendra Modi meeting Israel PM Benjamin Netanyahu on 26 February 2026 in Israel
India PM Narendra Modi meeting Israel PM Benjamin Netanyahu on 26 February 2026 in Israel
Written by Aparna Rawal

Indian Prime Minister Narendra Modi concluded a two-day visit to Israel (February 26–27, 2026), marking a significant upgrade in bilateral relations with Benjamin Netanyahu. Joint statements were presented by the leaders of both nations on February 27, 2026, elevating ties to a “Special Strategic Partnership.”

This development signals a shift toward deeper strategic alignment across defence, advanced technology, and economic integration.

Key Agreements and Announcements (February 27, 2026)

  • Defence Cooperation: From Buyer to Co-Developer
  • India and Israel agreed to expand defence ties beyond procurement into joint development and co-production.

Core areas include Missile systems and air defence, Unmanned systems (drones) Intelligence sharing and operational coordination.

This aligns with India’s push for domestic manufacturing and technological self-reliance.

Artificial Intelligence Partnership: A New Strategic Pillar

A major highlight was the launch of structured cooperation in artificial intelligence (AI).

Planned collaboration includes:

  • Joint research programs
  • Start-up ecosystem partnerships
  • Cross-sector applications in defence, healthcare, agriculture, and cybersecurity

This positions the partnership firmly in the future-tech domain.

India PM Narendra Modi meeting Israel PM Benjamin Netanyahu on 26 February 2026 in Israel
India PM Narendra Modi meeting Israel PM Benjamin Netanyahu on 26 February 2026 in Israel

Free Trade Agreement (FTA): Renewed Momentum

Both countries committed to increasing negotiations toward a long-pending Free Trade Agreement.

Expected impact:

  • Lower tariffs and trade barriers
  • Expansion of bilateral trade ($10 billion currently, excluding defence)
  • Greater access for goods, services, and technology

Broader Economic and Innovation Cooperation

Additional cooperation areas discussed across February 26–27, 2026 include:

  • Water management and agricultural technology
  • Innovation exchanges and start-up collaboration
  • Technology transfer frameworks

 

Strategic Significance

  • Elevation to “Special Strategic Partnership”
  • The upgrade places Israel among India’s top-tier strategic partners, reflecting:
  • Long-term security cooperation
  • Deepening technological integration
  • Expanding economic ties
  • Shift in Defence Doctrine

It is certain that India is transitioning from importer of defence systems to co-developer and producer.

Israel plays an important role in this transformation due to its advanced defence technology ecosystem.

Technology-Centric Diplomacy

The inclusion of AI signals a broader shift toward:

  • Digital cooperation
  • Innovation-driven partnerships
  • Dual-use technologies

 

Diplomatic Context: India’s Middle East Balancing

The visit comes amid a complex geopolitical landscape where India had to also maintain energy and economic relationships with Gulf nations and Iran. This reflects a multi-alignment strategy, where India has cautiously maintained neutral stance with regards to  choosing sides while maximizing strategic benefits.

 

Key Timeline

February 26, 2026: Modi arrives in Israel; bilateral talks begin

February 26–27, 2026: Delegation-level discussions and strategic consultations

February 27, 2026: Joint statement issued; partnership elevated

Consolidated Deal Brief

  • Defence
  • Joint development and co-production
  • Expanded cooperation in drones, missiles, and air defence
  • Artificial Intelligence
  • Joint R&D initiatives
  • Start-up and innovation ecosystem collaboration
  • Trade
  • Expansion of bilateral trade and investment
  • Economic & Tech Cooperation
  • Agriculture and water technology
  • Innovation partnerships

With clearly defined timelines and strategic priorities, the India–Israel partnership is evolving into a multi-dimensional alliance—combining defence capability, technological innovation, and economic cooperation.

The elevation to a “Special Strategic Partnership” is not just symbolic—it lays the groundwork for long-term strategic convergence in an increasingly complex global order.

 

More on the India – Israel relationship:

Israel Moves High-Tech Defence Manufacturing to India: https://www.thestrategicperspective.org/israel-moves-high-tech-defence-manufacturing-to-india/

India–Israel Defence Pact 2025: Boosting Make in India, Joint Production, and Military Technology Sharing: https://www.thestrategicperspective.org/india-israel-defence-pact-2025-boosting-make-in-india-joint-production-and-military-technology-sharing/

About the author

Aparna Rawal

With a Master’s in International Relations and Diplomacy with a specialization in Anti-Terrorism from Annamalai University, a Diploma in Labor Laws and Administrative Laws from the same institution, and a B.A. in Media Study from SUNY Buffalo, New York, USA, Aparna brings a strong interdisciplinary foundation to TSP. She has served as the former Editor-in-Chief of Voice of Baloch.Her expertise lies in interpretations of militancy, state behavior, and shifting regional power dynamics.

With over a decade of experience as a researcher and analyst focusing on defence, counterterrorism, and geopolitics, she has contributed to several respected publications, including Indian Military Review, Indian Defence Review, South Asia Monitor, and The Eurasian Times. Her work and commentary have also been quoted across numerous platforms, underscoring her credibility as a sought-after voice in the field.

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