I am able to deploy the eclipse plugin in many different ways. Such as a jar or an update site. However I completely fail to see how to include dependencies. I am able to declare them in the feature.xml (under the dependencies tab). However, when I export this as a deployable p2 site, none of the dependencies can be found. The dependencies are other plugins which I happen to have on my machine/eclipse folder. Therefore the plugin runs from my workspace, however I am completely unable to deploy it to other eclipse installations due to the missing dependencies.
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The P2 update manager must know the update sites of the dependencies. Then it will modify an installation request of the user for your feature to also include those dependencies. This answer suggests manually modifying the generated context.xml, which sounds reasonable.
A (not really recommended) alternative might also be to mirror the dependencies on your update site (using the P2 mirroring tasks). During the initial installation P2 could then use the mirrored features from your own update site and afterwards it could update to the most current version on the original site (given that those dependencies make their own update site known, which every good plugin does).