Indian Prime Minister Narendra Modi has delved into the history of the relationship between India and Israel, which has improved exponentially since 2014 when he came to power, as he addressed the Knesset, the Israeli parliament, in Jerusalem.

During the speech on Wednesday, the first day of his two-day visit to Israel, Modi also urged closer cooperation on various projects, including the proposed India-Middle East-Europe Economic Corridor (IMEC) and the I2U2.

We unpack what the IMEC and I2U2 are and why Modi’s address is significant.

What did Modi say during his Knesset address?

Modi was greeted with a standing ovation in the Knesset. Parliamentarians chanted his name as the Indian prime minister replied with a namaste by joining his palms.

The Indian prime minister opened his speech by saying the “world was shattered by the barbaric terrorist attack by Hamas on October 7”, referring to the 2023 Hamas-led attacks on villages and army outposts in southern Israel that triggered Israel’s genocidal war on Gaza, which has killed more than 70,000 Palestinians.

“We feel your pain. We share your grief,” Modi said, adding that India stands by Israel “with full conviction”. Modi said India and Israel are “trusted partners” and this “contributes to global stability and prosperity”.

After this, the Indian leader gave a history of Jewish people in India and of the relationship between India and Israel.

“We are committed to expanding trade, strengthening investment flows and promoting joint infrastructural development.”

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Modi added that an investment treaty signed between India and Israel last year will provide confidence and predictability for businesses in both India and Israel.

“We will also work closely in different formats, such as the India-Middle East-Europe Economic Corridor and the I2U2 frameworks between India, Israel, UAE and the US,” he added.

What is the IMEC?

The IMEC project was announced on September 9, 2023, during a Group of 20 summit in New Delhi. It is a proposed infrastructure project that would connect India, the Middle East and Europe with an integrated rail and shipping corridor, according to the project’s website.

The corridor would pass through India, the United Arab Emirates, Saudi Arabia, Jordan, Israel and Europe and would include a network of railways, ports and highways to facilitate logistics and the free flow of trade along its route.

According to the project’s website, the IMEC aims to foster economic cooperation and green development through sustainable infrastructure projects.

What is the I2U2?

The I2U2 group was established by India, Israel, the UAE and United States at a virtual summit

Some analysts have called the I2U2 “the West Asian Quad” or “the Middle Eastern Quad” in reference to the Quad, or the Quadrilateral Security Dialogue, an informal forum comprising the US, Japan, Australia and India.

According to the US Department of State, the I2U2 devises projects and initiatives to address world challenges in the areas of water, energy, transportation, space, health, food security and technology.

It added that the project aims to modernise infrastructure, advance low-carbon development pathways and improve public health.

The group’s initiatives include a food security project in India, a hybrid renewable energy project in India’s Gujarat state and a project to address environmental and climate change challenges using space-based observation data and capabilities.

Why is Modi’s speech to the Knesset significant?

Modi made his visit to Israel as ties strengthen between Israel and India and against a backdrop of complex and rising geopolitical tensions in and around the Middle East.

Strengthening ties

Relations between India and Israel have hugely improved over the years. While still under British rule in the 1920s and 1930s, India strongly identified with the Palestinian struggle for independence.

India initially opposed Israel’s creation and United Nations membership before recognising the state in 1950. Full diplomatic relations were delayed until 1992, after which India-Israel economic ties expanded gradually over the next 20 years.

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Since Modi became prime minister, there has been a further shift in the relationship between the two countries. Nine years ago, Modi became the first Indian prime minister ever to visit Israel.

India is currently Israel’s second largest trading partner in Asia after China. According to India’s Ministry of External Affairs, trade jumped from $200m in 1992 to $6.5bn in 2024.

“Modi is underscoring IMEC and I2U2 as part of a broader push to deepen economic and strategic cooperation with Israel and key Middle Eastern partners, positioning India at the centre of emerging trade and technology corridors amid shifting regional geopolitics,” said Sanam Vakil, the director of the Middle East and North Africa Programme at the London-based Chatham House think tank.

Collaborative projects like the IMEC and I2U2 are central elements of the expanding partnership between India and Israel. Additionally, they connect India and Israel to Middle Eastern countries.

“For Gulf states like the UAE and Saudi Arabia, IMEC and I2U2 offer a chance to cement their roles as pivotal connectivity and logistics hubs linking Asia, the Middle East and Europe while accelerating economic diversification beyond oil,” Vakil told Al Jazeera.

“However, lingering UAE-Saudi policy competition and Israel’s stance on Palestine inevitably complicate the political cohesion needed to fully deliver projects like IMEC.”

Regional tensions

Modi’s visit to Israel also comes amid worsening regional tensions.

It follows India’s decision to join more than 100 states in condemning Israel’s de facto expansion in the occupied West Bank, a move New Delhi delayed by a day, suggesting hesitation as a result of its close ties with Israel.

This week, Netanyahu said he plans to form a new regional bloc of countries that he called a “hexagon” alliance to stand against “radical” Sunni and Shia Muslim “axes”.

On Sunday, Netanyahu said this alliance would include Israel, India, Greece and Cyprus along with other unnamed Arab, African and Asian states. None of these governments, including India, has officially endorsed this plan, however.

At the same time, US-Iran tensions are escalating. Washington is building up military assets near Iran while US President Donald Trump threatens limited strikes over Iran’s nuclear and missile programmes. Tehran has said it prefers diplomacy but will defend itself if attacked.

Israel will likely be a front-line participant in any escalation that might follow from US strikes or Iranian retaliation, analysts said.