India’s growing role in Israel’s economy amid Gaza conflict

India has sent over 20,000 workers to Israel to fill labor shortages exacerbated by the ongoing Gaza war, Middle East Eye reported. This has not only raised significant ethical and political concerns. As Israel faces growing international isolation due to its actions in Gaza, India has become a key partner in sustaining Israel’s economy, even amid rising tensions over the conflict.

Since November 2023, when the war began, India has provided a steady flow of workers to Israel under a bilateral framework signed between the two nations. According to a recent statement by Kirti Vardhan Singh, Minister of State in the Ministry of External Affairs, 6,730 construction workers and 44 caregivers arrived in Israel through official channels, while private recruiters facilitated the migration of an additional 13,000 workers, many of them in caregiving and construction sectors.

The Israeli Builders Association, struggling with severe labor shortages after the cancellation of work permits for over 70,000 Palestinian workers, lobbied the Israeli government to recruit workers from India. The resulting recruitment drive has led to thousands of Indian workers standing in long lines outside job centers across the country, eager to seize the opportunity for higher wages, often up to three times what they would earn in India.

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However, the influx of Indian workers has sparked controversy. Critics, including labor unions and activists, argue that India’s support for Israel amidst its military actions in Gaza risks endorsing human rights violations. The All India Central Council of Trade Unions (AICCTU) condemned the recruitment, calling it a “suicidal project” that would put workers’ lives at risk.

Clifton D’Rozario, the national vice-president of the AICCTU, warned that India’s continued economic cooperation with Israel undermines its historical stance on Palestinian liberation. “If private contractors are facilitating the movement of workers and the Indian government does nothing to regulate or stop it, it indicates a worrying disregard for both Indian workers and the lives of Palestinians,” D’Rozario said.

ECONOMIC DESPERATION AND MORAL COMPROMISE

While many Indian workers seek better economic opportunities, their migration highlights a deeper issue within India: stark economic inequality. A 2024 report by the World Inequality Lab found that India has one of the highest levels of income disparity in the world, with millions struggling to find stable, well-paying jobs. This has pushed workers to seek opportunities abroad, including in Israel, where wages are far higher than in India.

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The recruitment agency Dynamic Staffing Services, which has facilitated thousands of Indian workers’ migration to Israel, claims that India’s role in the reconstruction of Israel is crucial. “Israel had traditionally depended on Palestinian and migrant workers from other nations, but the political situation has left a big vacuum,” said a spokesperson for the agency.

In addition to the 20,000 workers, the Indian government has confirmed that several hundred workers have returned due to issues such as skill mismatches or language barriers, and one agricultural worker died during the Israel-Lebanon conflict in March 2024.

ACTIVIST BACKLASH: INDIA’S COMPLICITY IN THE GAZA CONFLICT

Simultaneously, the Indian government’s support for Israel is under fire from a growing number of activists, who are calling for India to halt its arms sales to Israel. Groups such as Bengaluru for Justice and Peace (BfJP) have pointed out that several Indian companies have been supplying components to Israeli defense contractors like Elbit Systems and Israel Aerospace Industries. These companies, in turn, are manufacturing weapons used in Israel’s ongoing military operations in Gaza.

In an open letter to Indian parliamentarians, BfJP condemned the role of Bengaluru-based companies in facilitating the Israeli military’s activities, including arms sales. “The role of corporate entities in sustaining the illegal Israeli occupation and its genocidal campaign in Gaza, is one that must concern you greatly,” the letter read.

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Several reports have confirmed that Indian firms are deeply involved in supplying critical components for Israeli drones and other weapons. According to the Centre for Research on Multinational Corporations (SOMO), between October 2023 and April 2025, the Bengaluru-based SASMOS HET Technologies Ltd sent \$25 million worth of components to Israeli arms manufacturers. These companies, activists say, are complicit in war crimes, as Israel’s attacks on Gaza have been recognized by human rights groups as potentially amounting to genocide.

GROWING DOMESTIC DISCONTENT

Public discontent is also brewing in India. Prominent figures, including writer and activist Arundhati Roy, have called on the government to cease the sale of arms and military equipment to Israel. Roy has argued that India’s complicity in the Gaza conflict risks tarnishing the country’s international reputation and ties with Palestinian solidarity movements.

The increasing militarization of India’s relationship with Israel, particularly under Prime Minister Narendra Modi, has raised alarms among human rights advocates. Since upgrading ties to “strategic partners” in 2017, India and Israel have deepened their collaboration in defense, technology, and research. The government has actively discouraged public protests in support of Palestine, while several groups across the country have been targeted and harassed for speaking out.

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In this fraught environment, activists are working tirelessly to raise awareness of India’s complicity in the ongoing war. The growing links between Indian corporations and Israel’s military industry underscore a broader geopolitical shift, one that aligns India more closely with Israel at the cost of its historical support for Palestinian rights.

LOOKING AHEAD: A CONTROVERSIAL PARTNERSHIP

As the conflict in Gaza continues, India’s involvement with Israel—both in terms of providing labor and facilitating military support—remains a contentious issue. The government’s refusal to acknowledge or act on its role in this complex web of economic and military cooperation has left many wondering whether India’s strategic partnerships are worth the moral compromises they entail.

For now, the relationship between India and Israel remains one of pragmatism over principle, as India continues to provide essential labor to Israel’s economy while activists push for greater accountability for the actions of both governments in Gaza.