Prime Minister Narendra Modi’s call for a “two-state solution” to resolve the Israel-Palestine conflict, made during his state visit to Indonesia and while conferring with Indonesian President Prabowo Subianto, marks a significant articulation of India’s West Asia policy at a moment when the region is emerging from a period of acute military turbulence. Speaking in Jakarta on July 7, 2026, Mr. Modi underlined that the role of dialogue and diplomacy has become more important than ever on the issue of Palestine, even as India continues to support both the pursuit of lasting peace and the two-state solution.
This statement carries weight because it comes at a delicate diplomatic juncture — barely weeks after a ceasefire ended a broader West Asian military crisis triggered by the Iran-Israel conflict, and amid continuing Israeli military operations in the Gaza Strip that have killed Palestinian civilians, including in Khan Younis on the very day of Mr. Modi’s remarks. For UPSC and SSC aspirants, this episode offers a rich case study of India’s long-standing, carefully calibrated position on the Israel-Palestine question, and how India balances its deepening strategic relationship with Israel against its historical solidarity with Palestinian statehood and its expanding partnerships with Gulf and Southeast Asian nations.
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Understanding India’s stance requires tracing its evolution from the Non-Aligned Movement era of unequivocal support for Palestine, through the post-1992 normalisation with Israel, to the current “de-hyphenated” policy under which India engages both Israel and Palestine on their own merits without treating the relationship as a zero-sum equation. Mr. Modi’s Jakarta remarks, and the accompanying joint statement on defence, connectivity and economic cooperation with Indonesia, are best understood as part of a broader eastward and southward diplomatic outreach at a time when West Asia remains volatile.
Background and Context
Mr. Modi’s Indonesia visit, his first as Prime Minister to Jakarta in this term, comes amid heightened global turbulence stemming from the West Asian crisis and included the signing of a Memorandum of Understanding (MoU) on defence cooperation, with India set to deliver BrahMos supersonic cruise missiles and Astra Mk-1 beyond-visual-range air-to-air missiles to Indonesia. The visit is also significant for reinforcing India’s “Act East” outreach through commitments on connectivity, trade and cooperation on commercial space launches. Indonesia bestowed on Mr. Modi its highest civilian honour, “Bintang Adipurna of the Republic of Indonesia,” recalling that India’s first Prime Minister Jawaharlal Nehru had received the same award posthumously in December 1995.
Five Important Key Points
- Mr. Modi’s remarks came in Jakarta on July 7, 2026, where he and Indonesian President Prabowo Subianto jointly reaffirmed the importance of dialogue and diplomacy in resolving the Israel-Palestine conflict.
- The visit resulted in a defence Memorandum of Understanding under which India will supply Indonesia with BrahMos supersonic cruise missiles and Astra Mk-1 beyond-visual-range air-to-air missiles.
- Indonesia conferred its highest civilian award, the “Bintang Adipurna,” on Mr. Modi, an honour that was posthumously given to Jawaharlal Nehru in December 1995.
- On the same day as Mr. Modi’s remarks, Israeli strikes in Khan Younis, Gaza, reportedly killed at least six Palestinians, according to territory health officials.
- The joint statement referenced the transit passage through the Strait of Hormuz being “in accordance with international law,” reflecting shared concern over the recent West Asian energy security crisis.
Historical Evolution of India’s West Asia Policy
India’s position on Palestine dates to the pre-Independence era, when the Indian National Congress supported the Palestinian cause as part of its broader anti-colonial solidarity. India recognised the Palestine Liberation Organisation (PLO) in 1975 and was among the first non-Arab states to recognise the State of Palestine in 1988. Simultaneously, India established full diplomatic relations with Israel only in 1992, reflecting decades of Cold War-era non-alignment considerations. Since the early 2000s, and particularly under the current government, India has pursued a policy of “de-hyphenation” — engaging Israel primarily on defence, technology and agricultural cooperation, while maintaining developmental assistance and diplomatic support for Palestinian statehood, without allowing either relationship to be held hostage to the other.
India’s Strategic and Defence Considerations
India’s expanding defence exports, exemplified by the Indonesia deal for BrahMos missiles (a joint India-Russia venture) and Astra air-to-air missiles, illustrate the growing salience of defence diplomacy in India’s foreign policy toolkit, particularly with Southeast Asian partners navigating their own tensions with China in the South China Sea. This defence cooperation with Indonesia — the first ASEAN nation to receive the BrahMos — has strategic resonance with the broader Free and Open Indo-Pacific framework that India promotes alongside partners such as Japan, Australia and the United States (through mechanisms like the Quad).
Geopolitical Dimension of the West Asia Crisis
Mr. Modi’s remarks on the two-state solution must be read against the backdrop of the recently concluded West Asian military crisis, in which Iran and Israel engaged in direct conflict following an Israeli strike, drawing global concern about energy security given the strategic importance of the Strait of Hormuz. India, as a major energy importer with no formal alliance commitments in the region, has consistently urged restraint and diplomacy while quietly working to protect its expatriate community — estimated in the millions across the Gulf states — and its energy supply lines.
India’s Economic and Diaspora Interests
Beyond the moral and diplomatic dimensions, India’s stance on Israel-Palestine, and West Asia more broadly, is shaped heavily by economic interests: the region supplies a substantial share of India’s crude oil and hosts millions of Indian workers whose remittances form a critical part of India’s current account. Any escalation in the Israel-Palestine conflict, or a resumption of hostilities involving Iran, carries direct consequences for Indian households through fuel prices and for state economies like Kerala that depend heavily on Gulf remittances.
Comparative International Response
India’s calibrated position — supporting a two-state solution rhetorically while avoiding harsh condemnation of Israel — mirrors the diplomatic posture of several middle powers, including Indonesia itself (the world’s largest Muslim-majority country), which has historically supported Palestinian statehood without severing pragmatic engagement with global powers. This contrasts with more overtly pro-Palestinian positions taken by some Gulf states in recent years and with the unconditional support extended by the United States to Israel.
Way Forward
India should continue leveraging its unique position — trusted by both Israel and key Arab and Islamic nations — to play a constructive, if limited, role in multilateral efforts toward a negotiated two-state solution, while insisting on humanitarian access and civilian protection in Gaza. Simultaneously, deepening defence and connectivity partnerships with Southeast Asian nations like Indonesia diversifies India’s strategic relationships and reduces overreliance on any single geopolitical theatre.
Relevance for UPSC and SSC Examinations
This topic is highly relevant to UPSC GS Paper II (India and its neighbourhood, bilateral and multilateral groupings, foreign policy affecting India’s interests) and current affairs-based Prelims questions. For SSC, it is useful for questions on India’s foreign policy milestones and defence export achievements. Key terms: Two-state solution, de-hyphenation policy, BrahMos missile, Astra Mk-1, Strait of Hormuz, Bintang Adipurna, Non-Aligned Movement, Act East Policy.