- Israel and India Strengthen Economic Ties: A free trade agreement is on the way, with Israel serving as a gateway for India’s westward expansion. Cooperation focuses on technology, cybersecurity, and infrastructure.
- Israel’s Strategic Role in the Indo-Mediterranean: Israel positions itself as a key hub in the India-Middle East-Europe-US trade corridor, reducing dependence on unstable routes and fostering new economic connections.
- Opportunities for Italy: The port of Trieste could become a crucial hub in the new trade route. Italy must integrate into the India-Israel-Europe triangle to stay competitive against France and Germany.
Israel and India are strengthening their economic and strategic ties. A free trade agreement between the two countries could be signed within the year, while the United States, with Donald Trump back in office, is reviving the project of a trade corridor connecting India, the Middle East, Europe, and the United States, passing through Israel. The discussion gained more prominence after Prime Minister Narendra Modi’s visit to D.C. last week.
This convergence is not coincidental. India has long sought a western outlet that does not pass through the geopolitical bottlenecks of China and Russia. Israel, with its central position in the Mediterranean and its advanced technological capabilities, is the perfect partner for this ambition.
A Strategic and Commercial Alliance
The recent Israeli economic mission to New Delhi, the largest ever organized, marked a turning point in bilateral relations. Economy Minister Nir Barkat called it “proof of the will to deepen economic ties and open the Indian market to Israeli technologies.”
Over 100 Israeli companies participated in the delegation, focusing on cybersecurity, smart agriculture, renewable energy, digital health, artificial intelligence, and big data. The 600 business meetings held during the visit indicate the growing weight of the partnership: Israel offers cutting-edge technologies, while India guarantees scale and market access.
India also wants to strengthen cooperation: in 2025, Commerce and Industry Minister Piyush Goyal will lead a delegation of hundreds of Indian entrepreneurs to Israel to expand investments and technological collaborations. With a bilateral trade volume already reaching $5 billion in 2024, the growth potential is enormous.
Israel as a Hub for the Indo-Mediterranean
The Israeli-Indian rapprochement fits into a broader strategy. The main objective is the trade corridor promoted by the United States: a network of infrastructure connecting India, the Middle East, Europe, and America, reducing dependence on routes dominated by unstable or hostile actors.
According to an Israeli official, “this is why Israel and India will sign a new trade agreement. This is why there is a major rapprochement between the two countries.”
The vision is clear: Israel is positioning itself as the natural bridge between the Indo-Pacific and the Mediterranean. India needs secure access to Western markets, and Israel represents the strategic gateway. The same idea is behind the revival of the India-Europe-Middle East-Economic-Corridor (IMEC), a project aimed at creating a land and sea connection from India to the United States, passing through Israel and Europe.
Why Should Italy Care?
Italy cannot afford to stay on the sidelines of this development. The Indo-Mediterranean is increasingly becoming a concrete concept, and those who position themselves today will reap the benefits tomorrow. Italy, with its geographic position and historical presence in the Mediterranean, must insert itself into this axis.
The Trieste port could become a key point of the new India-Israel-Europe trade route, providing Italy with a strategic gateway for increased trade and investment. Italian companies could play a role in technology transfer and infrastructure expansion within the corridor, while the defense sector, where Italy and Israel already collaborate, could be another pillar of trilateral cooperation.
Israel and India are building a new economic and strategic architecture with U.S. support. Italy must decide whether to remain a spectator or become a key player.
