The recent conflict between Israel and Hamas, which left a significant impact on the region, has brought to light a noteworthy development with economic implications for India. In response to the displacement of 90,000 Palestinian workers, whose work permits were revoked following the hostilities, Israel has initiated a program to hire up to one lakh (100,000) Indian workers into its workforce.
This move by Israel reflects a complex set of circumstances arising from the conflict. Prime Minister Narendra Modi had previously reached out to his Israeli counterpart, Benjamin Netanyahu, expressing solidarity with Israel during the crisis and advocating a joint stand against terrorism. India’s support for Israel during this period is indicative of the growing alliance between the two nations.One of the key economic implications of this development is the substantial increase in remittances to India. Indian workers employed in Israel will likely send a significant portion of their earnings back home, bolstering the financial well-being of their families and contributing to the Indian economy.
Furthermore, this policy shift in Israel’s labor market can be seen as an opportunity amid discord. It strengthens the economic ties between India and Israel, creating a closer bond between the two countries.This alliance has been steadily growing since 1992 when formal diplomatic relations were established. Trade has played a pivotal role in strengthening Indo-Israeli ties, with India emerging as a significant importer of Israeli defense articles. Additionally, the strong rapport between the leaders of both nations has been instrumental in reinforcing bilateral relations. Prime Minister Modi’s historic visit to Israel in 2017 marked the first such venture by an Indian head of state and emphasized the deepening friendship and cooperation between India and Israel.
In conclusion, Israel’s move to employ Indian workers amidst the aftermath of the conflict highlights the multifaceted nature of the relationship between the two nations, driven by shared economic interests, diplomatic ties, and a growing alliance that goes beyond the complexities of the region’s geopolitics.