Prime Minister Narendra Modi began his two-day visit to Israel on Wednesday, with a key defence agreement expected to be among the major outcomes of the trip.

According to sources, India and Israel are in advanced negotiations for a deal involving six mid-air refuelling aircraft for the Indian Air Force (IAF). The proposed agreement, estimated at around Rs 8,000 crore, would significantly strengthen India’s aerial refuelling capability.

Under the plan, an Israeli government-owned corporation is expected to collaborate with Hindustan Aeronautics Limited (HAL) to convert six pre-owned Boeing 767 passenger aircraft into military tanker jets for the IAF.

IAF’s long-pending tanker requirement

The Indian Air Force currently operates six ageing Russian-origin IL-78 mid-air refuelling aircraft. Efforts to procure additional tanker aircraft have remained unsuccessful for nearly two decades, leaving the force dependent on its limited fleet and, at times, leased aircraft to meet operational requirements.

If finalised, the new agreement would mark a significant upgrade in India’s aerial refuelling capacity, which plays a crucial role in extending the operational range and endurance of fighter jets and other aircraft.

Sources indicated that negotiations are ongoing, and the agreement is likely to be formalised in 2026.

High-level engagements in Israel

During his visit, Prime Minister Modi is scheduled to hold talks with his Israeli counterpart Benjamin Netanyahu. He will also address the Knesset and interact with members of the Indian diaspora.

In his departure statement, the Prime Minister described India and Israel’s relationship as a robust and multifaceted strategic partnership that has seen remarkable growth. He said he looks forward to discussions aimed at strengthening cooperation in areas such as science and technology, innovation, agriculture, water management, defence and security, trade and investment, and people-to-people ties.

The Prime Minister noted that his address to the Knesset would mark the first time an Indian Prime Minister addresses the Israeli Parliament.

Prime Minister Narendra Modi will begin a two-day visit to Israel on Wednesday, with defence and trade cooperation high on the agenda. The visit is expected to further deepen the growing strategic engagement between the two countries.

During the trip, India and Israel are set to upgrade their relationship to a “special strategic partnership”, marking a significant step beyond the strategic partnership established in July 2017 during the Prime Minister’s first visit to the country.

Sources indicated that the new framework would enable expanded collaboration, including joint development of advanced defence systems and a strengthened understanding to support each other during times of need.

High-level engagements in Jerusalem

Mr Modi will be received at the airport by Israeli Prime Minister Benjamin Netanyahu and his wife Sara. The two leaders are scheduled to hold a one-on-one meeting shortly after his arrival.

In Jerusalem, the Prime Minister will interact with members of the Indian community before addressing lawmakers at the Knesset, a distinction reserved for select global leaders.

On Wednesday evening, he will attend a technology exhibition showcasing Israel’s advancements, with leading Israeli industry executives expected to be present. Mr Netanyahu will also host a private dinner in his honour.

Tribute at Yad Vashem and presidential meeting

On Thursday morning, Mr Modi will pay tribute to Holocaust victims at Yad Vashem. He is also scheduled to meet Israeli President Isaac Herzog during the visit.

Defence cooperation and technology partnerships

Several memorandums of understanding are expected to be signed, including a widely discussed agreement in the defence sector. As part of the proposed arrangement, a secrecy mechanism will reportedly be created to facilitate expanded cooperation in previously restricted areas.

Local media reports have indicated discussions around air defence systems and possible integration of India into Israel’s laser-based air defence system, Or Eitan.

Beyond defence, the two nations are expected to formalise cooperation in emerging and disruptive technologies such as artificial intelligence, quantum research and cybersecurity.

In New Delhi, the Ministry of External Affairs said the visit would reaffirm the deep-rooted strategic partnership and provide an opportunity to align efforts in addressing shared challenges while strengthening collaboration between the two democracies.

Defence cooperation has been a cornerstone of India-Israel relations, with Israel supplying a range of military platforms and weapon systems to India in recent years. Bilateral ties have also expanded in fields including scientific research, innovation and cybersecurity.

US President Donald Trump has said that tariffs collected from foreign countries could eventually replace the modern system of income tax in the United States, arguing that such a shift would ease the financial burden on American citizens.

Speaking during his annual State of the Union address, Trump defended his sweeping tariff measures, asserting that countries which had “ripped off” the US for years were now paying billions of dollars in duties.

“As time goes by, I believe that tariffs, paid for by foreign countries, will, like in the past, substantially replace the modern-day system of income tax, taking a great financial burden off the people that I love,” he said.

The Republican leader credited tariffs as a key driver behind what he described as an economic turnaround. According to him, the US collected “hundreds of billions of dollars” through import duties, which he said helped secure favourable economic and national security deals.

“Countries that were ripping us off for decades are now paying us hundreds of billions of dollars,” Trump said, adding that the arrangements had resulted in growth and no inflation during that period.

Supreme Court ruling draws sharp reaction

Trump also criticised a recent 6-3 ruling by the Supreme Court of the United States that struck down his earlier sweeping import duties. He termed the verdict “very unfortunate” but maintained that most countries and corporations would continue to honour agreements already negotiated.

He said alternative legal provisions would allow his administration to retain similar tariff measures without requiring new congressional approval. “They’re a little more complex, but they’re actually probably better,” he said, referring to the legal statutes under which the revised duties would be imposed.

Hours after the ruling, Trump signed a fresh order imposing a 15 per cent tariff on imports from around the world. The new measure falls under a law that limits such duties to 150 days and is expected to take effect almost immediately.

Reciprocal tariffs and global backlash

On April 2, Trump announced “reciprocal” tariffs of up to 50 per cent on imports from countries with which the US runs trade deficits, along with a 10 per cent baseline tariff on most other nations. He invoked a 1977 law to declare the trade deficit a national emergency, which he said justified the sweeping import taxes.

Following global backlash, the administration suspended the reciprocal tariffs for 90 days to allow negotiations. According to Trump, several countries agreed to new trade terms during that period, while others faced steeper duties for not complying.

Reiterating his stance, Trump also linked tariffs to what he described as conflict resolution efforts abroad, saying the “threat of tariffs” had helped him settle disputes.