India had established full diplomatic relationship with Israel in 1992 though it had recognised the country in 1950.
"Both the governments are contemplating to hold a series of events on a variety of subjects to celebrate the occasion in a befitting manner," the External Affairs Ministry said in a statement.
The ties between the two countries are on an upswing, particularly in areas of defence and agriculture.
India is the largest buyer of Israel's military hardware and the latter has been supplying various weapon systems, missiles and unmanned aerial vehicles over the last few years but the transactions have largely remained behind the curtains.
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It said both the countries are committed to further deepening and diversifying the relation in many areas including those of space, science and technology, education and innovation.
Israeli President Reuven Rivlin had visited India in November during which both sides had decided to "broadbase" their already close defence partnership.
There were indications that Prime Minister Narendra Modi may visit the country sometime this year.