Modi and Netanyahu - Made in Heaven

India has emerged as possibly the largest purchaser of weapons from Israel in the last decade-since Prime Minister Modi came to power in India.

India’s relationship with Israel runs deep and goes back several decades. The ties extend beyond defence and homeland security and cover technology and agriculture. Defence trade between the two nations rose significantly under Prime Minister Narendra Modi.

“99% that India will be Israel’s largest customer on military side- includes hardware, software, surveillance equipment we buy, transfer of technology, there are multiple joint ventures between the two countries and Modi has made this relationship more high profile,” said Somnath Mukherjee, an international affairs expert and chief investment officer at ASK Asset and Wealth Management, explaining the depth of the India-Israel relationship.

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India is the biggest arms customer of Israel. For India, Israel is its non-judgmental, hi-tech friend that it has relied on to fund its defence ambitions.

The relationship is all-encompassing – from military and homeland security to hi-tech and cooperation in agriculture. In 2022, the two countries – surrounded by hostile neighbours – signed a vision document to extend their defence collaboration.

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Israel’s support to India during the 1999 Kargil War by providing direct military assistance bolstered the relationship further. While Israel charged an “arm and a leg” for the assistance, its help came when none was forthcoming from elsewhere and it proved to be fairly critical in turning the tide, said Mukherjee.

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India emerged as the largest purchaser of weapons from Israel in the past decade since Modi came to power in 2014. According to data from the SIPRI Arms Transfer Database compiled by the Observer Research Foundation, India’s purchases of weapons from Israel have risen steeply.

In 2016, India bought $700 million worth of weapons from Israel, compared with $400 million spent in 2015 and $150 million spent in 2014. India bought the maximum weapons from Israel from 2015 to 2017.

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While India has relied on Israel for its ambitious defence plans, for Israel, India’s purchases gives it access to a growing market. Countries including the US, Singapore, Vietnam and Azerbaijan are also buyers of Israeli military equipment, but their purchases have been fairly insignificant, except in 2021, when the US bought equipment worth about $150 million and Azerbaijan purchased equipment worth over $200 million in 2016 and 2018.

India is Israel’s most valuable customer. About half of India’s air defence is of Israeli heritage, and most Indian ships have Israeli radars.

According to the SIPRI Arms Transfer database and the IISS Military Balance compiled by the Observer Research Foundation, missiles including Python 5, BVRAAM, SkyStriker loitering munition, and Griffin Guided Bombs; Heron and Harop drones, and Barak SAM systems have been purchased from Israel.

Sameer Patil, senior fellow at the Centre for Security, Strategy and Technology and deputy director of ORF Mumbai, said in a report that Israeli sensors, Heron drones, hand-held thermal imaging devices and night-vision imaging equipment have proved advantageous for the Indian army in curbing infiltration along the Line of Control and in counter-insurgency operations.

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Significantly, the two countries have also cooperated in defence technology – the Barak-8 air and missile defence system was jointly developed by Israel Aerospace Industries and India’s Defence Research and Development Organisation. IAI is also working with Hindustan Aeronautics Ltd. to convert second-hand Boeing 767 civilian aircraft into mid-air refuellers for the Indian Air Force.

There have been joint ventures between Israeli and Indian companies including Bharat Forge, Tech Mahindra, the Adani Group and Tata Advanced Systems to produce homeland security systems.

Israeli technology is used in dry irrigation, specifically systems such as drip irrigation and advanced filtration, and the two countries are now working on enhancing their agricultural tech cooperation.

Foreign direct investment from Israel into India was $284.96 million from April 2020 to March 2023, including in agriculture, water and hi-tech projects. India and Israel are also part of the I2U2 group, along with the United Arab Emirates and the US.

Managing relations with Israel has been relatively easy for India. With Israel focused on the commercial aspect, India has managed to press all the significant levers.