The majority of Indian Jews have "made Aliyah" (migrated) to Israel since the creation of the modern state in 1948. Over 70,000 Indian Jews now live in Israel (over 1% of Israel's total population). Of the remaining 5,000, the largest community is concentrated in Mumbai, where 3,500 have stayed over from the over 30,000 Jews registered there in the 1940s, divided into Bene Israel and Baghdadi Jews, though the Baghdadi Jews refused to recognize the B'nei Israel as Jews, and withheld dispensing charity to them for that reason. There are reminders of Jewish localities in Kerala still left such as Synagogues. Majority of Jews from the old British-Indian capital of Calcutta (Kolkata) have also migrated to Israel over the last six decades.
Between 1948 and 1952, some 2,300 Bene Israel immigrated to Israel. Several rabbis refused to marry Bene Israel to other Jews, on grounds that they were not legitimate Jews. As a result of sit-down protests and hunger strikes, the Jewish Agency returned 337 individuals in several groups to India between 1952 and 1954. Most returned to Israel after several years.
In 1962, the Indian press reported that European-Jewish authorities in Israel had treated the Bene Israel with racism. They objected to the Chief Rabbi of Israel ruling that, before registering a marriage between Indian Jews and Jews not belonging to that community, the registering rabbi should investigate the lineage of the Indian applicant for possible non-Jewish descent. In case of doubt, they should require the applicant to perform conversion or immersion. The alleged discrimination may be related to the fact that some religious authorities believe that the Bene Israel were not fully Jewish because of having had intermarriage during their long separation from major communities of Jews. Others thought that was a convenient cover for racially based bias against Jews who were not Ashkenazi or Sephardim. Between 1962 and 1964, the Bene Israel community staged protests, and in 1964 the Israeli Rabbinate declared that the Bene Israel are "full Jews in every respect".
The Report of the High Level Commission on the Indian Diaspora reviewed life in Israel for the Bene Israel community. It noted that the city of Beersheba in Southern Israel has the largest community of Bene Israel, with a sizable one in Ramla. They operate a new form of the joint family transnationally. Generally the Bene Israel have not been politically active and have had modest means. They have not formed continuing economic connections to India and have limited political status in Israel.