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Home World News Middle East

Israel and India seek trade pact in 2025 as Trump touts US-India corridor via Israel

February 16, 2025
in Middle East
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Israel and India seek trade pact in 2025 as Trump touts US-India corridor via Israel
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Israel and India are seeking to sign a long-touted free trade agreement as early as this year, with US President Donald Trump revamping plans for a proposed US-India trade corridor through Israel.

Leading a large business delegation to New Delhi last week, Economy Minister Nir Barkat, said that the visit marked “a breakthrough in the economic relations between Israel and India.”

“The largest business delegation ever sent from Israel is proof of our commitment to deepening economic ties, expanding Israeli exports, and opening the Indian market to groundbreaking Israeli technologies,” said Barkat. “Cooperation between our nations will drive economic growth, strengthen mutual investments, and create new jobs in both countries.”

The rapprochement comes during the same week Trump continued a push from his predecessor Joe Biden to build a rail and shipping corridor linking India with the Middle East, Europe, and the US — an ambitious project aimed at fostering economic growth and political cooperation.

During a meeting at the White House with Indian Prime Minister Narendra Modi on Thursday, Trump announced that the two leaders “agreed to work together to help build one of the greatest trade routes in all of history.”

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“It will run from India to Israel to Italy and onward to the US, connecting our partners, roads, railways, and undersea cables,” Trump said.

Israel’s Economy Minister Nir Barkat (left) with India’s Commerce & Industry Minister, Piyush Goyal in New Delhi, February 2025. (Courtesy of Israel Economy Ministry)

“This is the big idea: creating a connection from India, through Israel, to Europe and all the way to the US, according to Trump’s vision,” an Israeli government official told The Times of Israel. “This is why we will sign a new trade agreement with India.”

“This is why there is a major rapprochement between Israel and India, and this is why we sent the delegation,” the official said.

Last week’s business delegation to New Delhi included over 100 Israeli companies, in the areas of cybersecurity, smart agriculture, renewable energy, digital health, water technologies, AI, and big data. The participating companies held over 600 business meetings and engaged with hundreds of Indian business leaders to foster economic partnerships, expand mutual investments, and strengthen bilateral ties. During the visit, the delegation met with Indian business giants such as TATA group, Nasscom, and GMR, and participated in the India Energy Week.

“Israel’s capabilities in innovation and security are extraordinary, and the technology demonstrated in ‘Operation Beepers‘ [a reference to Israel’s clandestine operation on the Hezbollah terror group in September] is truly inspiring and unique — we want it here too,” said India’s Commerce & Industry Ministry, Piyush Goyal. “There are immense opportunities for collaboration between Israel and India, which will lead to significant geopolitical and economic achievements in the region.”

During a business forum meeting in New Delhi attended by the Israeli delegation led by Barkat, Goyal announced that he would lead a business delegation of hundreds of Indian executives to Israel in 2025. The delegation will focus on expanding investments in Israeli companies, advancing technological collaborations, and promoting key sectors, such as water technologies, cybersecurity, healthcare, and advanced agriculture.

In 2024, bilateral trade volume between Israel and India reached $5 billion, which included $2.5 billion in Israeli exports, $1 billion in diamond trade, and $1.5 billion in imports from India to Israel.

US President Donald Trump speaks with the press as he meets with Indian Prime Minister Narendra Modi in the Oval Office of the White House in Washington, on February 13, 2025. (Jim Watson/AFP)

Bilateral ties between Israel and India go beyond diamonds. Israel is the fourth largest supplier of military hardware to India. Cooperation agreements have also multiplied in the fields of water systems, agriculture, health, and solar energy.

Times of Israel staff contributed to this report.

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