While gems, jewellery, and electrical machinery remain the mainstays of trade between India and Israel, it is the arms and ammunition sector that has grown the fastest over the past ten years.
Even though Israel’s overall exports to India have decreased, a review by Moneycontrol shows that arms trade between the two countries rose sharply—by 33 times—between 2015 and 2024.
In 2024, the weapons trade between India and Israel reached $185 million, a major jump from just $5.6 million in 2015. The peak came in 2023, when arms trade between the two nations hit $265 million.
India, one of the world’s largest weapons buyers, is the main importer in this trade. In 2015, Israel sent just $168,000 worth of arms to India. That number grew to $135 million in 2023 and slightly dropped to $128 million in 2024.
By 2024, arms and ammunition became the second-largest import category from Israel, after electrical machinery. Notably, this category wasn’t even in India’s top 10 imports from Israel until 2020.
India still mainly sources its military equipment from Russia, the U.S., and France.
Could an Israel-Iran War Affect India’s Trade?
Although Israel accounts for a small portion of India’s total trade—$3 billion out of $1,160 billion—a war in the region could still pose serious risks, especially if shipping routes are affected.
The Strait of Hormuz is a vital passage for nearly 20% of global oil shipments. A major conflict between Israel and Iran could disrupt or even shut down this key route, experts warn.
On June 13, Israel carried out coordinated airstrikes inside Iran, reportedly damaging nuclear sites and killing top military officials. Israeli Prime Minister Benjamin Netanyahu called the operation vital to Israel’s survival and pledged to continue until the Iranian threat is neutralized.
In response, Iran launched over 100 drones toward Israel, according to reports.
India-Israel Trade Trends
India’s trade with Israel has been declining since 2023. Indian exports to Israel dropped from $7.6 million in 2022 to $6.1 million in 2023, and further to $2.1 million in 2024.
However, certain export categories such as explosives, base metals, and machinery (including smartphones) have grown. For instance, explosive exports rose 200% in 2018, and electrical machinery saw an 18% increase.
On the import side, India’s imports from Israel fell sharply—from $2.8 billion in 2022 to $1.3 billion in 2024. The type of goods imported also changed: consumer goods rose from 4.7% of imports in 2015 to 17.8% in 2024, while capital goods jumped from 27.1% to 45.7%.
Despite some ups and downs, India’s exports to Israel have grown at a faster rate than imports. Israel’s share in bilateral trade has declined over time—falling from 38.9% during 2011–2015 to just 31.5% in the last four years.
