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India–Israel Agri-Tech Innovations And Start-up Exchange: A Partnership For Sustainable Growth (2025) – IMPRI Impact And Policy Research Institute

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India-Israel

Policy Update
Madhu Swaraj

Background

 The economic relationship between India and Israel has evolved strategically, moving beyond the traditional defence-centric ties to encompass high-technology sectors like cyber, water management, and most significantly, Agri-Tech. This partnership leverages Israel’s cutting-edge agricultural innovation and India’s massive scale, diverse market, and vast talent pool, creating a powerful synergy for sustainable and inclusive growth.

 Agricultural cooperation between India and Israel dates back to the establishment of full diplomatic ties in 1992. It was formalised in 2006 through a comprehensive work plan, which has since seen multiple three-year cycles of expansion.

 Initially focused on G2G (Government-to-Government) knowledge transfer, the partnership has shifted towards B2B (Business-to-Business) engagement. Today, it leverages India’s massive scale (the 3rd largest startup ecosystem) and Israel’s “Startup Nation” prowess to create solutions for the global market.

India-Israel

Functioning

 The India–Israel Agri-Tech Innovations and Start-up Exchange operates through a multi-layered, government-to-government (G2G) framework, supplemented by private sector initiatives, to bridge the gap between Israeli expertise in high-tech agriculture and the vast scale and unique challenges of the Indian farming sector.

 The functioning mechanism primarily relies on two pillars: Technology Transfer through Demonstration and Joint R&D/Commercialization Support.

1. Technology Transfer: The Indo-Israel Agricultural Project (IIAP)

 This is the primary G2G channel for disseminating Israeli farm technology. It is a bilateral partnership operationalized through successive multi-year Work Plans (e.g., 2021-2023 Work Plan).

A. Centers of Excellence (CoEs)

The CoEs are the cornerstone of the IIAP and its main implementation model. The CoEs function as advanced demonstration farms and knowledge transfer hubs. As of late 2024, there are over 30 fully active CoEs across various Indian states, with more in development. 

 The Federal Government of India (Ministry of Agriculture & Farmers Welfare, National Horticulture Mission) and State Horticulture Departments define the key crops and sanction the activity, ensuring local relevance. MASHAV (Israel’s Agency for International Development Cooperation) guides the CoE’s technical standards and transfers the Israeli ‘know-how’ and technology.

  • Technology Demonstration: Showcasing Israeli-developed technologies like Drip Irrigation systems, advanced fertigation, protected cultivation (greenhouses/polyhouses), and water-use efficiency techniques, tailored to local Indian crops (e.g., Mango in Karnataka, Date Palm in Rajasthan, Vegetables in Haryana).
  • Applied Research: The CoEs conduct applied research to adapt Israeli technologies to specific Indian soil, climate, and crop conditions.
  • Capacity Building: Providing intensive, hands-on training to Indian farmers, Subject Matter Specialists (SMS), and field extension officers on best practices. Over 3.6 lakh farmers have been trained.
  • Production: Serving as a source for high-quality, disease-free planting material, vegetable seedlings, and fruit saplings on a commercial scale.

B. Villages of Excellence (VoEs)

 The CoEs’ knowledge is further scaled through the Indo-Israel Villages of Excellence (IIVoE) program, which identifies approximately 150 villages around operational CoEs to adopt the Israeli technologies and methodologies widely, thereby integrating the entire village into the modern agricultural value chain.

2. Start-up and R&D Exchange: India-Israel Industrial R&D and Technological Innovation Fund (I4F)

 This mechanism specifically targets the start-up and innovation ecosystem by providing financial and operational support for joint industrial R&D.

A. The I4F Mechanism

  • Fund Structure: A dedicated US$40 million (with equal contributions from both governments) fund for industrial R&D and innovation.
  • Stakeholders:
    • India: Department of Science and Technology (DST) and the implementing body, Global Innovation & Technology Alliance (GITA).
    • Israel: Israel Innovation Authority (IIA).
  • Function: It issues periodic Calls for Proposals (CFP), inviting joint R&D projects between an Indian company and an Israeli company.

B. Focus and Funding

  • Sectors: While covering multiple sectors (Water, ICT, Energy, etc.), Agri-Tech remains a priority, focusing on co-development and commercialization of new technologies.
  • Funding Model: The fund provides substantial conditional grants (often up to 50% of the project cost, and up to 70% for start-ups) for projects ranging from feasibility studies to large-scale R&D and pilot programs. The grant is repayable through royalties only if the project is commercially successful.
  • Goal: To support the joint creation of innovative, market-ready solutions that address both Indian (e.g., smallholder farm automation, climate resilience) and global challenges.

3. Accelerator and Mentorship Programs

 Complementing the G2G structures, programs like the India-Israel Innovation Accelerator (i3A) focus on market adaptation and business models:

  • Role: These accelerators match established Israeli technology providers and growth-stage start-ups with the specific requirements of large Indian corporations and the local market.
  • Output: They provide mentorship, deep local insights, and help the start-ups achieve product-market fit in India, facilitating cross-border investment and technology deployment in a commercially viable manner.

 This entire framework ensures a full-cycle engagement, moving from high-level government agreements (Work Plans) to ground-level knowledge dissemination (CoEs) and finally to high-tech, market-driven co-creation and commercialization (I4F & Accelerators).

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 The establishment of Semiophore Ltd. in December 2025 represents a historic shift in the India-Israel economic corridor. For the first time, India is not just a consumer of Israeli technology but a co-creator and out-licensor of high-end agricultural intellectual property.

Overview of the Agreement

  • The Entities: A 50:50 joint venture between ATGC Biotech (a Hyderabad-based pioneer in semiochemicals) and Luxembourg Industries (an Israeli crop protection giant).
  • Financial Commitment: A combined investment of $10 million dedicated to establishing infrastructure and handling global regulatory registrations.
  • The Technology: The deal involves the out-licensing of 18 Indian-developed semiochemical technologies, primarily focused on pheromone-based mating disruption and pest management.

Key Objectives & Strategic Shift

  • Manufacturing Flip: In a reversal of traditional trade dynamics, these Indian technologies will be manufactured in Israel for the first time. This leverages Israel’s advanced manufacturing standards to meet stringent international quality benchmarks.
  • Global Market Entry: The venture targets multi-billion dollar markets beyond India and Israel, specifically focusing on Brazil, the United States, and Australia.
  • Chemical Reduction: The core goal is to reduce reliance on conventional insecticides by over 80%. The technology uses “behavior-modifying” pheromones that prevent pests from mating rather than killing them with toxins, ensuring residue-free crops.
  • Crops Covered: The solutions are designed for high-value agricultural exports, including grapes, almonds, tomatoes, cotton, corn, and avocados.

Implementation Timeline

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Significance for the Partnership

 This agreement marks the maturity of the India–Israel Innovation Bridge. It transitions the relationship into the “Joint Innovation for Global Markets” phase. By combining India’s scientific R&D strengths (developed with support from the Department of Biotechnology and BIRAC) with Israel’s global marketing and regulatory expertise, both nations are positioning themselves as leaders in the $30 billion sustainable crop protection industry.

Performance

 The India–Israel Agri-Tech partnership has demonstrated significant success, primarily through structural technology transfer mechanisms and targeted innovation funding. Its performance is best assessed by examining the outcomes of its two main operational pillars: the Centers of Excellence (CoEs) for grass-roots impact and the I4F Fund for commercial innovation. 

1. Performance of the Indo-Israel Agricultural Project (IIAP) and CoEs

 The IIAP, running since 2008, is the most visible and impactful aspect of agricultural cooperation, focusing on ground-level transformation. 

  • Over 30 active Centers of Excellence (CoEs) have been established across India, covering over 12 states and specializing in high-value crops like fruits (Mango, Citrus, Pomegranate, Date Palm), vegetables, flowers, and even integrated bee-keeping.
  • Farmers adopting the techniques demonstrated at CoEs, particularly the use of polyhouses and drip irrigation, have reported substantial profit increases (e.g., reports of an annual profit of ₹12 lakh per half-acre in some regions like Dindigul, Tamil Nadu).
  • The CoEs have functioned effectively as practical knowledge hubs, having trained lakhs of Indian farmers (over 3.6 lakh trained) and extension workers, leading to a demonstrable shift in traditional farmer mindset towards adopting new technologies like mulching, pathogen-free nursery management, and fertigation.
  • The project has introduced high-quality, disease-free planting material, which is crucial for high-value horticultural crops. This focus has opened up potential avenues for export and better price realization for farmers.
  • The widespread promotion of drip irrigation and other micro-irrigation systems through the CoEs is critical for a water-stressed country like India. This has led to better water-use efficiency compared to flood irrigation, a key performance metric for sustainable agriculture.

2. Performance of Start-up Exchange and Joint R&D (I4F)

 The India-Israel Industrial R&D and Technological Innovation Fund (I4F), operational since 2018, measures performance by the quality and commercial viability of jointly developed technologies.

  • The I4F fund, backed by a US$40 million commitment from both governments, has successfully issued multiple Calls for Proposals (CFPs), selecting and funding joint projects in priority areas.
  • Several Agri-Tech and Water projects have been successfully funded and are moving toward commercialization. Projects focusing on developing cost-effective, efficient, solar-powered water pumping systems suitable for off-grid, smallholder farms in India have received grants.
  • Projects integrating improved groundwater level monitoring and smart controls for energy efficiency in agricultural pumping highlight a dual focus on water and power conservation.
  • Joint R&D on IoT-enabled satellite communication for real-time collection of agriculture and environment data across India shows a clear move toward digital and Precision Agriculture.
  • The fund has promoted the crucial link between Israeli technological innovation and Indian market scale and manufacturing capabilities.
  • The engagement has facilitated the entry of several Israeli Agri-Tech and Water-Tech companies (like Netafim) into the Indian market, alongside the growth of Indian start-ups, creating a dynamic bilateral innovation corridor.

 The Agri-Tech exchange is a major value-addition component within the broader bilateral trade relationship, which has seen merchandise trade (excluding defense) reach a peak of over US$10 billion (FY 2022-23), though it has since seen fluctuations due to external factors.

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Impact

 The “Start-up Exchange” has moved the needle on several socio-economic fronts:

  • Productivity Gains: Smallholder farmers using Israeli greenhouse and canopy management techniques have reported yield increases of 200–300% in crops like tomatoes and pomegranates.
  • Global Export Hub: India is increasingly being used as a manufacturing base for Israeli tech under the “Make in India” initiative, exporting finished agritech products to Brazil and the USA.
  • Climate Resilience: Innovations in drought-resistant seeds and atmospheric water generators are helping Indian farmers mitigate the risks of erratic monsoons.

 The exchange serves as a strategic economic partnership, securing food and water efficiency for India while providing a large-scale, high-growth market for Israeli technologies and innovation

Emerging Issues

 Despite the success, several hurdles persist:

  • Cost of Adoption: While technology like drone-based crop monitoring is available, the high cost of lithium-ion batteries and hardware remains a barrier for small-scale Indian farmers.
  • Fragmented Landholdings: Scaling precision agriculture is difficult in India, where the average farm size is less than 2 hectares, unlike the larger cooperative farms (Kibbutzim) in Israel.
  • Regulatory Alignment: Differences in Intellectual Property (IP) laws and seed certification processes can slow down the speed of startup exchanges.
  • Trade Balance: Recent data shows a dip in bilateral merchandise trade (falling 52% in exports in late 2024), highlighting the need for a Free Trade Agreement (FTA) to remove non-tariff barriers.

Way Forward

 The future of India-Israel agritech lies in deep-tech integration and market liberalization:

  • Finalising the FTA: Negotiations for a Free Trade Agreement are currently a priority to ease customs procedures and foster investment.
  • Five-Year Seed Improvement Plan (FYSIP): Both nations are moving toward a 5-year plan to jointly develop climate-resilient seeds that can withstand extreme heat.
  • Post-Harvest Technology: Shifting focus toward cold-storage and supply-chain logistics to reduce India’s post-harvest losses, which currently stand at nearly 20–30% for perishables.
  • Democratizing Tech: Using the “Village of Excellence” model to aggregate small farmers into groups, making high-capital Israeli technology financially viable through shared usage models.

 In conclusion, the India-Israel partnership in Agri-Tech and the start-up exchange is not merely a trade relationship but a strategic alignment of two innovation-driven economies. By pooling their complementary strengths (Israeli technological prowess and Indian market scale), they are co-developing solutions that have the potential to set a global example for sustainable and resilient agriculture.

References

About the Contributor:

Madhu Swaraj is a Research Intern at IMPRI. 

Acknowledgement: The author extends sincere gratitude to the IMPRI team for their expert guidance and constructive feedback throughout the process.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organization.

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