Indian companies are aggressively acquiring Israeli businesses, despite the ongoing conflict with Hamas and India’s historical support for Palestine. These strategic investments, spanning major sectors, reflect deeper geopolitical ambitions to counter China’s influence and secure India’s economic future.
Major Acquisitions
Adani Ports: Acquired 70% of Haifa Port for $1.2 billion in July 2022. As Israel’s largest seaport, handling 30 million tons of cargo annually, this acquisition is expected to lower living costs in Israel by increasing competition.
Sun Pharma: Bought the remaining 21.5% of Taro Pharmaceutical for $307 million in 2023. Valued at $1.3 billion, Taro provides Sun Pharma with a route into the North American market.
Infosys: Acquired Panaya for around $200 million in 2015, allowing Infosys to incorporate Panaya’s AI-powered change intelligence services.
Reliance Group: Planning to bid for Tower Semiconductor after Intel withdrew a $5.4 billion deal, aiming to enhance India’s semiconductor manufacturing capabilities.
Geopolitical Implications
Reducing China Reliance: India seeks to lessen its dependence on Chinese semiconductors, especially with the potential Chinese invasion of Taiwan. China currently holds a military advantage, threatening global semiconductor supply chains.
Strengthening Ties: Indian-Israeli relations have deepened since the 1990s, bolstered by high-profile visits and defense cooperation. India’s position has aligned more closely with Israel post-Hamas attack in October 2023, supporting its strategic interests against China’s influence.
IMEC Initiative: The India-Middle East-Europe Economic Corridor (IMEC) is a strategic response to China’s Belt and Road Initiative. It includes infrastructure projects such as rail links, hydrogen pipelines, and data cables, aimed at reducing reliance on China.