AFP-- Netanyahu also vowed that Israel would "catch up" with the killers of a Jewish couple murdered in 2008 attacks in Mumbai whose son is accompanying him on a six-day trip to India.
The Israeli PM arrived Sunday at the head of the biggest business delegation he has taken on a foreign visit.
Netanyahu told the India Today media group, in an interview released Monday, that he has a "special relationship" with his counterpart Narendra Modi.
But the run-up was clouded by India joining more than 100 countries at the United Nations in voting last month to condemn Washington's recognition of Al-Quds as Israel's capital.
"Naturally I am disappointed but I think this visit is a testament to the fact that our relationship is moving forward on so many fronts," Netanyahu said in the interview.
Ahead of the visit, India also cancelled a $500 million deal for Israeli Spike anti-tank missiles.
Israel exports an average of $1 billion of military equipment each year to India, but Modi wants to end India's status as the world's top defence importer.
But Netanyahu was again optimistic on the missile deal.
"I hope that this visit can help resolve this issue because I think there is a reasonable chance we can reach an equitable solution," he said.