A close alliance between Israel and India is forming, driven by Israel's need for people and India's need for jobs — a shift that could reshape the Middle East.

• Israel has money, technology, and military strength but a small population, hemmed in by a large Arab minority.
• India has hundreds of millions of young people with no work and no path to becoming the world's factory like China did.
• The fix for both: send Indian workers abroad, and Israel is the place most willing to take them.
• Israeli plans to hold and settle a much larger territory need a workforce seen as easier to absorb than the local Arab population.

Outlook: Expect a decade of deepening ties between Israeli money and Indian labor, with big consequences for the region's demographics and politics.