A multi-million pound fund is set to strengthen economic ties between Israel and India.

Government representatives established a £24 million investment pot to support technological ventures between entrepreneurs from both countries.

The two governments will each put in half the money over a period of five years.

The deal was announced on Tuesday by Israel's Economy Minister Naftali Bennett, who visited India on a diplomatic trip last year.

Mr Bennett also spoke about the effect a Palestinian state could have on Israel in a speech on Monday.

According to a report in Haaretz, he told the Habayit Hayehudi Knesset faction that: "A Palestinian state will wreck Israel's economy."

Mr Bennett said it posed a bigger security threat than any boycott.

Referring to a Dutch pension fund's decision to cease dealings with five Israeli banks operating in the West Bank, he said:

"Every day a missile will fall on another street in Herzliya Pituah. Ask yourselves how the Israeli economy will look if just once a year a plane about to land at Ben Gurion Airport falls out of the sky. It will decimate the Israeli economy."