I could be wrong but from what I read a while ago it's that there's not much traditional resources to export (Farming, Mining,..) and instead there's a focus on R&D and exporting technology. There's probably also a very high amount of R&D in the military sector that's subsidies as they have a very high export rate there (Elbit, Rafael,...).
Mandatory military service produces a disciplined and well-networked population. Israel also benefits from sensible commercial law and relatively efficient courts, two things India grossly lacks.
When a B is considered a poor grade by your mother and you are simply expected to be on top of your class, it does wonders. Genetics probably play a roll too, but that discussion is not allowed here.