Following the recent conflict between Israel and Hamas, an important development has surfaced that would affect India's economy. Israel has started a programme to hire up to 1,00,000 Indian labourers, as per the news network Voice of America (VOA).
Apparently, Israel's shift in policy is consistent with India's abstention from the United Nations General Assembly's (UNGA) vote, which demanded that the Israel-Hamas war end immediately.
Prior to this, Indian Prime Minister Narendra Modi had communicated with Benjamin Netanyahu, his Israeli counterpart, to urge a united front against terrorism and to reiterate India's steadfast support for Israel in this crisis.
It is anticipated that the labour market transition in Israel, which currently favours Indian workers, will result in a significant rise in remittances to India, enhancing the financial security of Indians working overseas.
Commenting on this development, Rishi Gupta, Research Fellow, Asia Society Policy Institute in New Delhi noted, “Indians form one of the most significant labour forces across the world. The offer comes amidst a shortage of labourers in Israel due to the cancellation of thousands of Palestinians who have been working in Israel. Amidst the ongoing war, it comes with security concerns, and India will have to look into the details. There will be local implications in Israel."
At the same time, if it takes shape, remittances will be a big plus, and a new welcoming market will surely benefit Indians willing to go. Meanwhile, there will be reparation risks, and India will have to double up its rescue mission in case of a war in the region, Gupta added.
Despite the current conflict, this new economic strategy presents a chance to deepen the commercial relations between Israel and India.
The government justified its decision to abstain from voting on a resolution calling for a humanitarian truce and ceasefire in Gaza in the UN General Assembly, claiming that the proposal did not include an "explicit condemnation" of the terror incidents that occurred in Israel on 7 October.
In response to criticism about the vote from members of the Opposition, government sources released a memorandum stating that India had chosen to abstain because its concerns about omissions had not been addressed by the resolution's final text.
"We appreciate India's support. Prime Minister Modi and Prime Minister Netanyahu have spoken. Clearly, in the UN resolution, we would have wanted India to vote against it. It was an outrageous resolution. It didn't mention Hamas once. It didn't call for an immediate return of the hostages," Israeli government spokesperson, Eylon Levy said.
India was one of the 88 nations that supported the amendment, with 55 voting against it and 23 abstaining. However, the amendment was not approved because it lacked the necessary two-thirds vote. With the exception of Tunisia, all Arab countries voted against the amendment.
“India’s decision to abstain from the UNGA vote on the Israel-Hamas conflict is a subtle diplomatic move. India has frequently supported Arab resolutions against Israel in the past, reflecting its historical stand on the Palestinian issue. However, the decision to abstain in this specific vote may indicate a shift or a more balanced stance in India's foreign policy,” Gupta stated.
Gupta further expounded that this abstaining allows India to avoid taking a clear stance in the dispute, primarily because of the concerns about regional stability, expanding ties with Israel, and a desire for a more independent and pragmatic posture on international matters. “This action allows India to maintain diplomatic flexibility and pursue its national objectives without being forced to identify with either of the conflicting parties,” he added.
India's decision is indicative of the strength and expansion of its partnership with Israel, which has been thriving since formal diplomatic relations were established in 1992.
The strengthening of bilateral relationships has also been aided by the personal bond between the two leaders. Trade between India and Israel has flourished in particular, with India turning into a major importer of Israeli defence hardware.