India’s Council of Scientific and Industrial Research (CSIR) and Israel’s Defense Research and Development (DDR&D) recently formalized their commitment to Industrial Research and Development Cooperation by signing a Memorandum of Understanding (MoU). The key objective is to foster joint research and development projects in various sectors.
The Scope of the India-Israel MoU
The MoU proposes collaboration in diverse areas such as Artificial Intelligence (AI), Quantum and semiconductors, synthetic biology, sustainable energy, healthcare, and agriculture. The main focus will be implementing specific projects that are mutually beneficial. Major industrial sectors targeted for this collaboration are aerospace, chemicals, and infrastructure. To ensure smooth operation and progress, a Joint Steering Committee will monitor the collaboration, led by the heads of CSIR and DDR&D.
Historical Perspective of India-Israel Relations
India officially recognized Israel in 1950 but established full diplomatic ties with Israel on January 29, 1992. As of December 2020, India was one of 164 United Nations member states maintaining diplomatic ties with Israel.
Economic and Commercial Insights
Trade between India and Israel saw a rise from USD 5 billion pre-Covid-19 to about USD 7.5 billion by January 2023. A large chunk, almost 50%, of the bilateral trade is regulated by the diamond industry. India is recognized as the third-largest trade partner for Israel in Asia and the seventh largest globally. Israeli firms have made investments in India across sectors such as energy, renewable energy, telecom, real estate, and water technologies, with an emphasis on setting up R&D centers or production units in India. In addition, a Free Trade Agreement (FTA) dialogue is ongoing between the two nations.
Defense and Military Cooperation
India is one of the largest importers of weapons from Israel, making up about 40% of Israel’s annual arms exports. The Indian armed forces have been equipped with a wide range of Israeli weapon systems over the years. In JWG 2021, a Task Force was agreed upon to formulate a comprehensive Ten-Year Roadmap to identify new areas of cooperation.
Agricultural Collaboration
In May 2021, a three-year work program agreement was signed to enhance agricultural cooperation. It is aimed at growing current Centres of Excellence (CoE), establishing new ones, increasing their value chains, and encouraging private sector collaboration.
Science and Technology Partnership
Several MoUs have been initiated between Israeli Start-Up National Central and Indian entrepreneurship centers like iCreate and TiE. Recently, in 2022, the scope of the India-Israel Industrial R&D and Innovation Fund (I4F) was widened to cover sectors like renewable energy and ICT through increased participation of academia and business entities.
Emerging Alliances and Future Prospects
Israel is now part of the India-led International Solar Alliance (ISA), which resonates with both countries’ objectives to enhance cooperation in renewable energy and partner for clean energy. As India recalibrates its West Asia policy, both nations need to overcome the challenges imposed by their religious extremist neighbors and focus on global issues like climate change, water scarcity, and food scarcity. A proactive Middle Eastern policy is crucial for India to maximize the benefits from geopolitical realignments brought about by the Abraham Accords.