Am-Shalem Singson, 28, from the Bnei Menashe community, from Manipur and Mizoram, was admitted to the Poriya hospital with severe chest injuries, Channel 13 reported.
The police continues to search for the two suspects based on his description of the incident, the leading Israeli TV channel reported.
Mr Singson told the police that he tried very hard to explain to the attackers that he was not Chinese and was not infected by the coronavirus, but it did not help.
The incident happened on Saturday.
Mr Singson immigrated to Israel from India with his family three years ago, the report said.
There were no witnesses to the incident and the police search is primarily based on the security footage in the area.
“We were shocked to receive the report of the vicious and racist attack in Tiberias,” Michael Freund, Chairman and Founder of Shavei Israel, the organisation that has been working on the immigration of Bnei Menashe to Israel, was quoted by the Channel as saying.
“I demand that the Israeli police investigate the incident immediately and prosecute those who committed this heinous act,” Mr Freund said.