India is the largest buyer of Israeli military equipment and Israel is the second-largest defence supplier to India after Russia. From 1999 to 2009, the military business between the two nations was worth around $9 billion. Military and strategic ties between the two nations extend to intelligence sharing on terrorist groups and joint military training.
As of 2014, India is the third-largest Asian trade partner of Israel, and tenth-largest trade partner overall. In 2014, bilateral trade, excluding military sales, stood at US$4.52 billion. Relations further expanded during Prime Minister Narendra Modi's administration, with India abstaining from voting against Israel in the United Nations in several resolutions. As of 2015, the two nations are negotiating an extensive bilateral free trade agreement, focusing on areas such as information technology, biotechnology, and agriculture.
Bilateral trade between India and Israel grew from $200 million in 1992 to $4.52 billion in 2014. As of 2014, India is Israel's tenth-largest trade partner and import source, and seventh-largest export source. India's major exports to Israel include precious stones and metals, organic chemicals, electronic equipment, plastics, vehicles, machinery, engines, pumps, clothing and textiles, and medical and technical equipment. Israel's imports from India amounted to $2.3 billion or 3.2% of its overall imports in 2014. Israel's major exports to India include precious stones and metals, electronic equipment, fertilisers, machines, engines, pumps, medical and technical equipment, organic and inorganic chemicals, salt, sulphur, stone, cement, and plastics. Israeli exports to India amounted to $2.2 billion or 3.2% of its overall exports in 2014.
In 2007, Israel proposed starting negotiations on a free trade agreement with India, and in 2010, then Indian Prime Minister Manmohan Singh accepted that proposal. The agreement is set to focus on many key economic sectors, including information technology, biotechnology, water management, pharmaceuticals, and agriculture. In 2013, then Israeli Minister of Economy Naftali Bennett projected a doubling of trade from $5 to $10 billion between the two countries, if a free trade agreement was successfully negotiated. As of 2015, negotiations on a free trade agreement continue, with both countries considering negotiating a more narrow free trade agreement on goods, followed by separate agreements on trade in investment and services.
Israeli imports from India amounted to $2 billion or 3.5% of its overall imports in 2015. The 10 major commodities exported from India to Israel were:[11