Binyamin Netanyahu has launched a swingeing attack on supporters of a boycott of Israel, accusing them of practising "antisemitism in a new garb", and urged the country's friends to "expose and outflank" them by emphasising its high-tech achievements and global economic appeal.

Addressing a conference of US Jewish organisations in Jerusalem, the Israeli prime minister said the international boycott, divestment and sanctions (BDS) movement was intended to lead to "the end of the Jewish state".

"Some supporters of the movement see it as a way to put pressure on Israel to end illegal settlements in the territories occupied in the 1967 war; others favour the creation of a single state that would dismantle Israel.

"I think the most eerie thing, the most disgraceful thing is to have people on the soil of Europe talking about the boycott of Jews," Netanyahu said. "In the past, antisemites boycotted Jewish businesses and today they call for the boycott of the Jewish state. And by the way, only the Jewish state.

"The founders of the BDS movement make their goals perfectly clear. They want to see the end of the Jewish state. They're quite explicit about it. And I think it's important that the boycotters must be exposed for what they are. They're classical antisemites in modern garb. And I think we have to fight them. It's time to delegitimise the delegitimisers."

Netanyahu's remarks reflect anger and anxiety in Jerusalem about BDS, which claims to have made a significant advance during the recent row involving Scarlett Johansson's sponsorship of a factory in a West Bank settlement and her leaving her role as a goodwill ambassador for Oxfam.

Pressure on Israel is mounting, especially from Europe, where NGOs, trade unions, churches and others are forcing their governments to take action. Last year the EU blocked grants and funding for any Israeli entity operating beyond the pre-1967 borders, building on earlier decisions to require the labelling of goods produced in settlements. Two weeks ago the US secretary of state, John Kerry, warned that Israel would face more calls for boycotts if the current peace talks with the Palestinians collapsed.

But Israel was far from being shunned, Netanyahu insisted: "Israel is being sought after.. Founders and leaders of big companies and some small companies and medium-sized companies … are all coming to Israel. They all want the same three things: Israeli technology, Israeli technology and Israeli technology. They know that Israel is the repository of great genius, great creativity, entrepreneurship, innovation, scientific capability, out-of-the-box thinking."

But Rafeef Ziadah, from the Palestinian BDS national committee, said: "More international corporations are ending their business and shying away from bids in Israel This trend is due to continue until Israel abides by international law and ends its system of colonialism, apartheid and occupation. The BDS movement is steadily making 'Brand Israel' a toxic one."