By Garima*
Published on November 12, 2024
India’s relationship with both Israel and Palestine has evolved significantly over the years. Today, as the Israel-Hamas conflict crosses one year with no immediate sight of resolution, India faces the complex task of balancing its historical support for Palestine with its growing ties to Israel. This balance is important for fostering a stable trilateral relationship among India, Israel, and Palestine.
The situation has become even more challenging, as regional volatility has increased, with Iran’s active involvement adding new complexities to India’s diplomatic approach. Understanding the factors that shape India’s position, the challenges it faces, and the impact of its approach helps illustrate the delicate path India navigates in this complex region.
India's ties with Israel and Palestine have evolved over the years, shaped by historical, political, and strategic factors. India’s support for the Palestinian cause is rooted in its anti-colonial stance and principles of self-determination, values it upheld even before its independence. In 1938, India expressed solidarity with Palestine and, after its independence, continued this support. India formally recognized the Palestine Liberation Organization (PLO) in 1974 and established diplomatic relations with the State of Palestine in 1988. For decades, India has backed various United Nations resolutions supporting Palestinian rights, including a 2012 vote to upgrade Palestine's UN status to a non-member observer state and a 2020 vote reaffirming Palestinian self-determination.
India’s pro-Palestine stance has been important in building relationships with the Arab world, aligning itself with movements supporting national liberation and anti-colonialism, and reinforcing its identity as a nation that values equity and human rights. These ties helped India foster goodwill among the Arab nations and positioned it as a responsible partner in the region.
India’s relationship with Israel has undergone significant changes over the past few decades. Though India initially opposed the creation of Israel and voted against it at the United Nations in 1947, it officially recognized the state in 1950. However, full diplomatic ties were only established in 1992, marking a major shift in India’s foreign policy.
Since then, India and Israel have developed strong partnerships in several critical areas, including defence, agriculture, and technology. In the early 2000s, during Operation Parakram, Israel’s military support to India highlighted the strategic depth of this relationship. By 2013, India had become Israel’s largest buyer of military equipment. Beyond defence, Israel has supported India’s agricultural sector, helping Indian farmers adopt advanced farming practices and techniques. This evolving partnership with Israel reflects India’s pragmatic approach in response to global power shifts and its own defence and technological needs.
This complex relationship reflects India's efforts to balance its historical support for Palestine while engaging with Israel to meet its strategic interests in a changing geopolitical landscape.
The ongoing Israel-Hamas conflict and regional instability have significant implications for India across multiple dimensions. India’s trade routes and maritime security interests, especially in the Red Sea, face rising risks due to the volatile environment. Disruptions from Houthi attacks, for instance, impact India’s naval operations, which initially focused on anti-piracy but now intersect with U.S.-led security efforts. However, India’s choice not to participate in direct military actions against Houthi forces reflects its balanced approach. India’s investments in regional projects—particularly the India-Middle East-Europe Economic Corridor (IMEC) are also at risk, as these disruptions threaten the pace of Arab-Israel normalisation that India relies on to bolster its economic ties with the region.
Energy Security and Economic Stability: The region supplies over 85% of India’s oil and gas, making any expansion of the conflict a direct threat to India’s energy stability. Rising crude oil prices could lead to inflation, weaken the rupee, put pressure on forex reserves, and even risk a twin-deficit crisis. Additionally, India’s key trade routes through the Gulf of Oman, Persian Gulf, and Red Sea could face higher shipping insurance costs, potential closures, and overall trade strain, which would make exports less competitive and increase consumer prices.
Impact on Strategic Projects: Projects like the Chabahar Port in Iran and IMEC, essential to India’s strategic and economic plans, also face delays as instability increases. The difficulty in securing infrastructure agreements and hesitancy from companies to invest in an unstable region hamper the completion of these projects, affecting India’s long-term connectivity and trade goals.
Diplomatic Complexity and Domestic Considerations: Balancing relationships with Israel, Iran, the U.S., and GCC states is crucial, given both economic stakes and religious sensitivities domestically. India’s stance on the conflict reflects a neutrality aimed at preserving these connections while considering the interests and sentiments within its diverse population.
Humanitarian and Diaspora Concerns: The conflict heightens concerns for the Indian diaspora in the Gulf, whose livelihoods depend on stability in the region. Ensuring their safety, continued mobility, and the ability to return to India safely when needed is increasingly challenging amid the unrest.
Trade and Investment Uncertainties: The conflict disrupts India’s supply chains, with delays in critical imports like crude oil and food supplies driving up costs for consumers and industries. Additionally, instability hampers logistics and slows industries reliant on timely deliveries. Projects like IMEC face setbacks as regional violence undermines agreements necessary for transportation infrastructure and trade links, delaying India’s plans to connect to Europe through the Middle East.
As the Israel-Hamas conflict continues, India’s economics, security, and diplomatic interests are deeply intertwined with the stability of the region. Balancing these priorities is essential for safeguarding India’s energy security, trade competitiveness, and long-term strategic partnerships in an increasingly volatile landscape.
The involvement of Iran in the Israel-Palestine conflict presents another layer of complexities for India. Iran’s long-standing support for Hamas and other groups in the region positions it as a major player with interests in opposing Israel. This adversarial stance complicates India’s relationships, as it relies on Iranian oil while simultaneously strengthening defence and technological ties with Israel.
Iran’s influence in the region means that India must navigate a careful diplomatic path. Rising tensions between Iran and Israel create additional security concerns, as a broader conflict would disrupt stability across the region, potentially affecting India’s energy security and economic interests. Balancing relationships with both Iran and Israel require India to remain flexible, as any misstep could strain relations with one or both countries and negatively impact India’s foreign policy goals.
The growing presence of militant groups in West Asia adds another dimension to India’s considerations in the region. Counter-terrorism is a high priority for India, given its own security concerns regarding terrorism. India’s cooperation with Israel in counter-terrorism initiatives reflects a shared interest in addressing these challenges, particularly as regional instability can provide a fertile ground for the growth of extremism.
This collaboration with Israel on counter-terrorism, however, introduces additional complexities in India’s relations with Arab nations, many of which have taken a strong stance in support of Palestinian rights. This balancing act, already delicate, is complicated further by the involvement of nations like Iran, which has its own influence on regional security dynamics.
Despite the challenges, India has continued to engage with both Israel and Palestine through various diplomatic and humanitarian channels. In Palestine, India has invested in infrastructure projects, including schools and hospitals, underscoring its commitment to Palestinian development. At the same time, India’s partnership with Israel in defence, technology, and agriculture continues to grow, demonstrating its strategic need for close ties with Israel.
India’s approach to the Israel-Palestine conflict remains centred on humanitarian assistance and support for dialogue, as it encourages both parties to seek peaceful resolution. This delicate stance allows India to navigate its diplomatic relationships in to protect and promote its diverse interests in a volatile West Asia.
*The Author is a Research Intern at the Kalinga Institute of Indo-Pacific Studies (KIIPS). She has a post-graduate degree in Public Administration from the Indira Gandhi National Open University (IGNOU), New Delhi.
Disclaimer: The Views in the Article are of the Author
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