In a meeting that underscores the shifting dynamics of global diplomacy and innovation, Israeli Prime Minister Benjamin Netanyahu and Indian Prime Minister Narendra Modi have reaffirmed their nations’ deepening strategic partnership. This engagement, marked by PM Modi’s historic address to the Knesset on 25 February 2026, reflects a sophisticated alignment across technology, energy, and national security.
The Israel–India relationship has evolved into one of the most robust partnerships in the Indo-Pacific. Built on mutual respect and pragmatic cooperation, the two nations are moving beyond traditional buyer-seller dynamics toward a model of co-development and joint manufacturing.
Defining the 2026 Strategic Agreement
The current engagement is more than symbolic; it encompasses several high-priority pillars aimed at long-term economic and regional stability:
- Defence & ‘Sudarshan Chakra’: A primary focus of the 2026 talks is the integration of Israeli Iron Dome technology into India’s indigenous air defence shield, the Sudarshan Chakra. This marks a shift toward sharing sensitive “interceptor” algorithms and laser-based defence platforms.
- Free Trade Agreement (FTA) Negotiations: Building on the Bilateral Investment Agreement signed in late 2025, the leaders have fast-tracked FTA negotiations. The agreement aims to reduce tariffs on high-tech components, medical devices, and green energy hardware.
- The ‘Hexagon’ of Alliances: Netanyahu and Modi discussed a new diplomatic vision; a “hexagon” of alliances connecting India, Israel, Arab nations, African states, and Mediterranean partners to secure maritime trade and energy corridors.
- The 100-Centre Agriculture Goal: A commitment to expand the number of irrigation centres from 43 to 100. These centres focus on “Villages of Excellence,” scaling Israeli precision irrigation and post-harvest tech to millions of Indian farmers.
A Partnership Rooted in Security and Sustainability
India remains Israel’s most significant strategic partner in defence. Israeli expertise in surveillance, border security, and counter-terrorism is being utilised to protect India’s vast borders.
Beyond security, the partnership is a lifeline for resource management. Israeli drip irrigation, desalination, and water recycling are now core to India’s food security strategy. Furthermore, as India accelerates its transition toward clean energy, joint ventures in hydrogen production and aluminium-air battery systems are creating new benchmarks for green mobility.
Israel’s Expanding Global Impact
The strengthening ties highlight a wider trend: Israel’s role as a global “Innovation Hub.” Often called the “Start-up Nation,” Israel continues to deliver solutions for climate resilience and digital security. From Quantum Computing (via the Israeli Quantum Computing Centre) to AI-powered medical diagnostics, Israeli firms are increasingly partnering with governments to build resilient economies.
Why This Matters for Australia
The expanding India–Israel cooperation offers a strategic roadmap for Australia. As the Australian government navigates its own energy transition and water security challenges, Israeli technologies present proven, scalable solutions. Areas of direct alignment include:
- Hydrogen & Energy Storage: Collaborative research into long-duration storage.
- Water Resilience: Advanced desalination and wastewater reuse for drought-prone regions.
- Cyber Security: Protection of critical infrastructure against evolving state-actor threats.
- AgTech: Precision farming to maintain yield despite climate variability.
A Strategic Opportunity for Australia
The growing global engagement of Israeli firms presents an opportunity for Australian industry and research institutions. Engaging with this ecosystem—through innovation partnerships and trade delegations—allows Australian stakeholders to evaluate real-world solutions that strengthen economic resilience.
What Australia Can Learn
As Israel continues to strengthen partnerships across Asia, Australia is well-positioned to deepen its own engagement. Government agencies, industry leaders, and investors are encouraged to explore collaboration opportunities with Israeli innovators. Participation in upcoming technology exchanges and industry forums can help Australian organisations identify the solutions needed to ensure future readiness in an increasingly interconnected world
Please contact one of our Trade Officer for further information: Lachlan.Corne@israeltrade.gov.il
israeltrade.org.au 