India’s biggest friends in the Middle East are often referred to as Saudi Arabia, the United Arab Emirates, or Qatar. While these countries invest billions of dollars in India, there is one country that is arguably even more important to India – Israel.
Israel may not contribute as much money as the other Middle Eastern countries, but its partnership with India goes beyond just financial investments. It is built on military ties, political support, and a strong friendship between Benjamin Netanyahu and Narendra Modi. These factors enable Indian businesses to expand and invest in Israeli startups, entrepreneurs, and industries.
As India’s economy continues to grow rapidly, its investments have led to the rise of billion-dollar companies. Indian companies such as Reliance Industries, Infosys, and the Tata Group have become major investors in Israel.
Reliance Industries, for example, has announced its intention to acquire Israel-listed company Tower Semiconductor. This deal, if successful, will give Reliance Industries access to the global chip supply chain, allowing it to compete globally in the manufacturing of analog chips for mobile phones and medical equipment.
Sun Pharma, another Indian multinational, has acquired Israeli company Taro Pharmaceuticals. This acquisition not only strengthens India’s presence in the drug markets but also provides technological advancements and pharmaceutical research capabilities.
Indian companies are also acquiring strategic assets such as ports. Adani Ports, led by a consortium, bought Haifa Port, Israel’s largest port. This acquisition gives India direct access to the country’s major cargo hub and opens up opportunities for further investments.
Other notable acquisitions include Infosys acquiring Israeli firm Panaya, bringing high-tech innovation to the company, and the Tata Group forming a joint venture with Israel Aerospace Industries to collaborate on defense products.
In addition to acquisitions, there have been joint ventures and collaborations between Indian and Israeli companies, as well as deals signed between the governments of India and Israel. These partnerships span various sectors such as healthcare, aerospace, electronics, and IT.
These collaborations have not only impacted the business sectors but also led to an increase in Indian employees in Israel’s IT sector. The presence of Indian professionals in Israel strengthens India’s global reputation for tech expertise.
Overall, the growing partnership between India and Israel has proven to be mutually beneficial, with India gaining access to advanced technologies and Israel benefiting from Indian investments and talent.
The Military Aspect
India has been acquiring advanced defense technologies from Israel, such as drones, radars, and missile defense systems. For example, India purchased the Barak-8, a long-range surface-to-air missile, which was co-developed by India’s DRDO and Israel Aerospace Industries. This is not just a purchase; it is a collaboration that has implications for India’s own technological capabilities.
The Partnership of Netanyahu and Modi
One of the main reasons behind this collaboration is the strong partnership between Israeli Prime Minister Benjamin Netanyahu and Indian Prime Minister Narendra Modi. Despite their historical relationship being far from close, the two leaders have been strengthening their relationship in recent years. This partnership has played a significant role in India’s acquisition of advanced defense technologies from Israel.
The Impact on Both Countries
The impact of these acquisitions is huge, especially for a small country like Israel. Although they may seem like small numbers compared to other countries, these billion-dollar acquisitions will make a big difference in the long run. For India, the impact will mainly be in terms of technology rather than economic gains. Acquiring advanced technologies from Israel will enable Indian companies to compete more effectively in the global markets.
FAQs
Q: Who are India’s biggest friends in the Middle East?
A: Saudi Arabia, the United Arab Emirates, and Qatar are often said to be India’s biggest friends in the Middle East.
Q: Is Israel important to India?
A: Yes, Israel is arguably even more important to India. The partnership between India and Israel goes beyond financial investments and includes military ties, political support, and a strong friendship between leaders.
Q: How do Indian businesses benefit from the partnership with Israel?
A: Indian businesses can expand and invest in Israeli startups, entrepreneurs, and industries. This opens up opportunities for growth and investment.
Q: Which Indian companies have invested in Israel?
A: Indian companies such as Reliance Industries, Infosys, and the Tata Group have become major investors in Israel. They have acquired Israeli companies and formed joint ventures with Israeli firms.
Q: Can you provide examples of Indian acquisitions in Israel?
A: Yes, for example, Reliance Industries intends to acquire Tower Semiconductor, providing access to the global chip supply chain. Sun Pharma has acquired Taro Pharmaceuticals, strengthening India’s presence in the drug markets.
Q: What other sectors have collaborations between India and Israel?
A: Collaborations between Indian and Israeli companies span various sectors such as healthcare, aerospace, electronics, and IT.
Q: How have collaborations between India and Israel impacted the IT sector?
A: Collaborations have led to an increase in Indian employees in Israel’s IT sector, strengthening India’s global reputation for tech expertise.
Q: Is the partnership between India and Israel mutually beneficial?
A: Yes, the growing partnership between India and Israel has proven to be mutually beneficial. India gains access to advanced technologies, while Israel benefits from Indian investments and talent.
