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."