The Jerusalem Accord: Anchoring the India-Israel Strategic Partnership

The official state visit of Prime Minister Narendra Modi to Israel on February 25–26, 2026, serves as a watershed moment in contemporary Indian diplomacy. Occurring exactly nine years after the first-ever visit by an Indian Prime Minister to the Jewish state, this mission was characterized by a shift from purely transactional security arrangements to a robust, multi-sectoral "Comprehensive Alliance." Amid a complex regional landscape, the visit underscored India's "de-hyphenated" foreign policy—pursuing deep strategic interests with Israel while maintaining a principled stance on regional peace and Palestinian statehood.

The Strategic Pivot: From Buyer-Seller to Co-Developers

The centerpiece of the 2026 visit was the transition of the defense relationship. Historically, Israel has been one of India’s top three defense suppliers, providing critical systems such as the Heron drones and SPICE precision-guided munitions. However, the outcomes of the 2026 summit moved beyond procurement.

A landmark Memorandum of Understanding (MoU) on Defense Technology Transfer was signed, focusing on the joint development of an "impregnable missile shield." Central to this is the integration of elements from Israel’s Iron Dome and Iron Beam (laser-based defense) systems into India’s indigenous Sudarshan Chakra air defense initiative. Unlike previous agreements, this pact emphasizes the transfer of "source-level" technology, enabling Indian public and private sector firms like HAL and Bharat Electronics Limited (BEL) to manufacture and maintain these systems locally under the Atmanirbhar Bharat (Self-Reliant India) framework.

Economic Integration and the FTA Breakthrough

On the economic front, the visit provided the necessary political impetus to conclude the first round of the India-Israel Free Trade Agreement (FTA) negotiations. Bilateral merchandise trade, which stood at $3.62 billion in FY 2024-25, is currently dominated by diamonds and chemicals. The 2026 framework aims to diversify this portfolio significantly.

The FTA is projected to:

• Reduce Tariffs: Lowering duties on electronic machinery, medical equipment, and high-tech components.

• Boost MSMEs: Creating a predictable regulatory environment for Indian small-scale manufacturers to enter the Israeli innovation ecosystem.

• Digital Public Infrastructure (DPI): An agreement to explore the integration of India’s Unified Payments Interface (UPI) in Israel was a major highlight, facilitating seamless cross-border financial linkages for businesses and travelers alike.

  
  

Agricultural Resilience and Water Diplomacy

The partnership in agriculture remains the most visible benefit for the Indian grassroots. During the visit, the two nations agreed to expand the number of India-Israel Centers of Excellence (CoE) to over 100 across various Indian states.

The strategic focus has shifted to "Precision Agriculture" and "Water Desalination." Israel’s expertise in recycling nearly 90% of its wastewater is now being adapted for Indian urban centers facing chronic water scarcity. This cooperation is not merely technical but existential, addressing the food security needs of India’s 1.4 billion people through climate-resilient farming techniques.

Navigating the Geopolitical Tightrope: Israel and Palestine

A critical achievement of the visit was the Prime Minister's address to the Knesset, where he successfully balanced India's unwavering commitment to counter-terrorism with its long-standing support for a "just and durable peace."

1. Counter-Terrorism: In his address, the Prime Minister reaffirmed India's "zero tolerance" for terrorism, citing the shared pain of 26/11 and the October 7 attacks. This alignment reinforces a mutual intelligence-sharing framework that is vital for India’s internal security.

2. The Palestinian Context: Simultaneously, the Prime Minister explicitly endorsed the Gaza Peace Initiative and reaffirmed India’s support for a two-state solution. By calling for dialogue and "wisdom, courage, and humanity," India maintained its status as a credible, non-partisan actor. This "de-hyphenation" allows India to treat its relationship with Israel as a standalone strategic necessity without abandoning its moral and diplomatic commitments to the Palestinian people.

   
   

Strategic Connectivity: The IMEC Factor

The visit also cemented Israel’s role in the India-Middle East-Europe Economic Corridor (IMEC). By positioning Israel as the western gateway for the corridor, India secures a transit route that reduces trade time to Europe by 40%. The strategic discussions in Jerusalem confirmed that Israel’s Haifa Port, largely managed by Indian interests, will serve as a primary hub for this global supply chain, effectively bypassing traditional maritime chokepoints.

Positive Domestic and International Reactions

The reaction to the visit has been overwhelmingly positive across the strategic community.

• Defense Experts: Lauded the shift toward "technology sovereignty," noting that Israel is offering India technologies (like the Iron Beam) that it has not shared with any other nation.

• Industry Leaders: The Federation of Indian Chambers of Commerce & Industry (FICCI) welcomed the FTA progress, noting that it provides "predictability" in an otherwise volatile global market.

• Diplomatic Analysts: Highlighted that the PM’s conferment of the Speaker of the Knesset Medal—making him the first world leader to receive it—reflects a level of institutional respect that transcends partisan politics in both countries.

  
  

Conclusion: A Stabilizing Alliance

The Prime Minister’s 2026 visit to Israel was a mission of consolidation. It moved the needle from tactical cooperation to a structural alliance. For India, the benefits are tangible: a more secure border through advanced missile tech, a more resilient agricultural sector through water innovation, and a faster trade route to the West via IMEC.

By factually anchoring the relationship in mutual security needs and economic complementarities, while maintaining a principled stance on regional stability, India has demonstrated a sophisticated "Realpolitik" that serves its national interest without compromising its global standing. The Jerusalem Accord is not just a bilateral success; it is a blueprint for how a rising India manages complex partnerships in an uncertain world.