I am an Indian and personally feel the the oil-intimidation is reaching a decisive phase.. The good people of this forum here is an excerpt from the article i read (For full article follow the hyperlink). i would apprecitae if u would take some time and post ur views on the same... Link to the chronology of India Israel collaboration
From time to time, the US Administration has expressed its concerns over Israel's sale of advanced weaponry to India for the following reasons:
Although the US does not consider India a military threat to its own troops (as in case of China), it is wary of a military escalation between India and Pakistan, which might lead to a nuclear war. The White House was the biggest critic of India's nuclear tests conducted in May 1998. The US not only imposed economic sanctions and an arms embargo on India, but also used its influence over its allies to enforce these. In addition, Washington has good commercial reasons for objecting to Israeli weapons sales to India. However, after the historic US tilt from Islamabad to Delhi in its South Asia strategic equation, US pressures on Israel not to sell advanced weapon systems to India have become milder. As Delhi and Washington begin to develop global strategic ties, the Indo-Israeli strategic alliance can act a useful catalyst, rather than a point of contention.
Prospects for the Future
The present strategic regional and global imperatives have created a consensus in Delhi and Jerusalem that their strategic alliance will be mutually beneficial in the short term as well as in the long term. Their special relationship has gone beyond the institutional framework and is gradually becoming stronger as their interaction multiplies.
India's shift in its Middle East policy has reaped good dividends for Delhi. Indian diplomats quietly admit that the 'Israeli card' is becoming useful in dealing with the Arab states. It has helped India to assume an added importance for the Arabs, including the Palestinians. As the two sides compete to extract favorable statements from Delhi during the ongoing Al-Aqsa Intifada, India has a useful opportunity to carve out a role for herself in the volatile Middle East. Keeping strict neutrality in the Arab-Israeli conflict is crucial for Delhi to gain the confidence of both sides and thereby enhance its profile in the region and beyond.
The future of the Indo-Israeli strategic alliance is tied up with domestic issues, regional security and the global strategic environment. Presently, most of these variables seem to be favourable. Socio-culturally India and Israel are discovering a natural affinity, their economic cooperation is proving mutually beneficial, a partnership in the defense and security spheres is developing, and politico-strategically both states are moving towards each other.
However, it is important to acknowledge that the two countries still need to develop a clear common security threat. In the absence of it, joint ventures in defense and security become vital to the Indo-Israeli strategic alliance in the medium term and long term. If properly pursued, these joint ventures may burgeon into a partnership for the co-production of armaments for sale to Third World countries and both countries will gain appreciably from such collaboration. Similarly, joint military exercises by the Indian and Israeli armed forces would provide further strategic depth for their relationship.
On the political front, the return of normalcy in the Middle East and a subsequent resumption of the peace process would contribute positively to the building of the Indo-Israeli strategic alliance. Conversely, a major Arab-Israeli conflict might slow down this process, especially if the traditionally pro-Arab Congress party returns to power in Delhi.
Seeing India as the emerging power of the 21st century, Jerusalem needs to take into account India's overall strategic objectives in the Middle East, which might not always coincide with Jerusalem's. Israeli leaders also need to give more weight to Delhi's concerns over the supply of advanced weapon systems to China. Meeting these concerns may yield Israel India's support at the United Nations, where India is a strong contender for a permanent seat in the expanded Security Council. Similarly, India can play a constructive role in further legitimizing Israel's acceptance on the Asian continent. Indeed, Israel's strategic alliance with India could constitute the pillar on which Israel's relations with the Third World are constructed.
Delhi-Jerusalem strategic ties can further be strengthened on the pattern of the Israeli-Turkish relationship. As India and Turkey have also begun to build strategic relationship, the possibility of a future Delhi-Ankara-Jerusalem strategic triangle cannot be ruled out. For those who believe in the importance of the balance of power, such a strategic triangle could provide stability and security to world's two most turbulent regions - South Asia and the Middle East. Such a strategic bloc should also be encouraged by the US, as its global and regional strategic interests converge with Washington's. Besides, it would protect and promote liberal democratic values in two regions dominated by dictatorial regimes