India and Israel elevated their bilateral relationship to a ‘special strategic partnership’ on Thursday, signing 27 agreements that place artificial intelligence, digital payments, labour mobility, and defence co-production at the centre of their future engagement.
The outcomes of Prime Minister Narendra Modi’s visit signal a decisive shift from a buyer–seller dynamic to a deeper, technology-led collaboration with a strong people-to-people component.
Beyond the strategic vocabulary and joint statements, the agreements carry immediate economic and human implications, from easier remittances and job opportunities for Indian workers to joint research labs and co-developed military platforms.
In a move that could directly touch citizens and businesses, India’s Unified Payments Interface (UPI) will be linked with Israel’s payment ecosystem, enabling seamless cross-border transactions.
For Indian tourists, students, and professionals in Israel, the change promises familiarity in financial transactions; for startups and small firms, it reduces friction in doing business. Equally significant is the framework to facilitate the recruitment of up to 50,000 Indian workers over five years across construction, logistics, hospitality, and manufacturing.
At a time when overseas employment remains a key source of household income in several Indian states, the agreement opens a regulated migration pathway while helping Israel address labour shortages triggered in recent years.
Artificial intelligence emerged as the defining pillar of the visit. The two countries signed a dedicated pact on AI that spans ethical use, joint research, academic exchanges, and industry partnerships.
A parallel initiative in education will bring AI-driven learning tools and collaborative training programmes for teachers and students. More consequentially, New Delhi and Tel Aviv agreed to set up a national security-led mechanism on critical and emerging technologies, covering AI, quantum computing, cybersecurity, and critical minerals.
The move places technological cooperation in the realm of long-term strategic planning rather than standalone commercial projects.
Both countries reiterated their commitment to counter terrorism and discussed regional connectivity initiatives, including the India–Middle East–Europe Economic Corridor. The expansion of cooperation into critical and emerging sectors indicates a long-term alignment of strategic interests.
At the same time, India underscored its support for peace and stability in West Asia, maintaining its diplomatic balance even as it deepens engagement with Israel.
Taken together, the agreements mark a shift from a narrowly defined strategic relationship to one anchored in mobility, economic linkages, and institutional collaboration, a change that brings the partnership closer to businesses, universities, and workers on both sides.