But we can at least have trade relation with it. Israel is very powerful country in the world. Palestine issue will not resolve in this life. India is developing 5G with Israel and we don't even allow anyone to go to Islam's 3rd most holy site Jerusalem (Masjidul Aqsa), In fact it was the first Qibla of us.
How would trade relations help?
It would annoy the Gulf states that we rely on for billions of dollars of remittance income every year.
Apart from the moral issue of recognising land usurpers, remember that other colonialist countries like US and Australia allow the indigenous inhabitants full rights in their native lands, what possible benefit will BD gain from them?