PM Modi in Israel highlights: Agreement reached on use of UPI in Israel, says PM Modi

What Happened

• Prime Minister Narendra Modi completed a two-day state visit to Israel on February 25-26, 2026, meeting Prime Minister Benjamin Netanyahu.
• India and Israel elevated their bilateral relationship to a "Special Strategic Partnership for Peace, Innovation and Prosperity" — an upgrade from the existing "strategic partnership."
• An agreement was reached linking India's Unified Payments Interface (UPI) with Israel's interbank payment operator MASAV, enabling Indian travellers in Israel to make QR-based payments directly from their bank accounts.
• The two sides signed 16 agreements/MoUs and announced 11 joint initiatives — spanning agriculture, artificial intelligence, cybersecurity, quantum computing, digital health, education, labour mobility, and defence.
• A joint initiative on critical and emerging technologies to be led by the two countries' National Security Advisors was announced.
• An Indo-Israel Cyber Centre of Excellence is to be established in India.
• Both nations vowed to finalise a Free Trade Agreement (FTA) soon, and Modi invited Netanyahu to India.

Static Topic Bridges

India-Israel Bilateral Relations: Historical Arc

India recognised Israel as a state in 1950 but did not establish full diplomatic relations until January 1992, under Prime Minister P.V. Narasimha Rao. The delay reflected India's post-independence policy of solidarity with the Arab world (and Palestine) and its non-aligned posture. Full diplomatic normalisation opened the door to deep defence and agricultural cooperation: by the 2000s, Israel became one of India's top defence suppliers, with Barak missiles, Heron drones, and Spyder air defence systems. PM Modi became the first Indian Prime Minister to visit Israel in July 2017. The partnership was designated a "Strategic Partnership" during that visit. The 2026 elevation to "Special Strategic Partnership" reflects the deepening of technology, AI, and cybersecurity ties alongside continuing defence cooperation.

UPI International Expansion: NPCI and MASAV

India's Unified Payments Interface (UPI) is one of the world's most successful real-time digital payment systems, developed by the National Payments Corporation of India (NPCI). NPCI International Payments Limited (NIPL) is the subsidiary responsible for expanding UPI outside India. The NPCI-MASAV agreement links UPI with MASAV (Merkaz Salikha), Israel's centralised interbank clearinghouse. This enables UPI-to-MASAV cross-border transfers, allowing Indian users to pay Israeli merchants using their existing UPI apps. UPI is currently live for merchant payments in UAE, Singapore, France, Bhutan, Nepal, Mauritius, Sri Lanka, and Qatar; the Israel expansion continues India's Digital Public Infrastructure (DPI) diplomacy.

India's Digital Public Infrastructure (DPI) Model

India's Digital Public Infrastructure (DPI) model refers to the JAM trinity (Jan Dhan bank accounts + Aadhaar biometric ID + Mobile connectivity) and its downstream applications: UPI, DigiLocker, ONDC (Open Network for Digital Commerce), AA (Account Aggregator) framework, and CoWIN. India has actively promoted DPI as a model for the Global South at the G20, UN, and bilateral forums. The India Stack — the open-source API layer underlying these systems — has attracted interest from over 50 countries. The G20 Global Partnership for Financial Inclusion (GPFI), India's Digital Economy Working Group, and the Social Impact Fund for DPI (launched at India's G20 Presidency) are institutionalising the model globally. Exporting DPI creates economic, diplomatic, and standard-setting influence for India.

India-Israel Technology Cooperation: Cybersecurity and Critical Technologies

Israel is globally recognised as a cybersecurity powerhouse — home to Unit 8200 alumni-founded companies (Check Point, CyberArk, NSO Group) and a state cybersecurity ecosystem ranked among the top globally. The India-Israel Cyber Centre of Excellence announced during Modi's 2026 visit builds on earlier cooperation: the India-Israel Industrial R&D and Technological Innovation Fund (BIRD Foundation), joint agricultural research, and water technology cooperation. India's National Cyber Security Policy (2013, under revision) and National Cyber Security Strategy (2020) have identified capacity building and public-private partnerships as priorities. Israel's experience in AI-powered threat detection, zero-trust architecture, and critical infrastructure protection is directly relevant to India's rapidly digitalising economy.

Key Facts & Data

• Modi's Israel visit: February 25-26, 2026 (state visit)
• Partnership upgraded to: "Special Strategic Partnership for Peace, Innovation and Prosperity"
• Agreements signed: 16 MoUs + 11 joint initiatives (total ~27 bilateral outcomes)
• UPI-MASAV MoU: NPCI International × MASAV (Israel's interbank clearinghouse)
• UPI currently live: UAE, Singapore, France, Bhutan, Nepal, Mauritius, Sri Lanka, Qatar
• Indo-Israel Cyber Centre of Excellence: To be established in India
• NSA-led critical tech initiative: Both NSAs to oversee critical & emerging technology cooperation
• India-Israel FTA: Both sides committed to finalising in 2026
• Full diplomatic relations: Established January 1992 (PM Narasimha Rao)
• First Indian PM to visit Israel: PM Modi, July 2017
• India-Israel trade (excl. defence): ~$7-8 billion/year
• India-Israel defence cooperation: Barak missiles, Heron drones, Spyder AD systems, Harop munitions