New Delhi: The first round of negotiations for a proposed Free Trade Agreement (FTA) between India and Israel concluded successfully in the national capital on Wednesday, marking a key step towards deepening economic ties between the two strategic partners.
The four-day talks, held from February 23 to 26, followed the signing of the Terms of Reference (ToR) in November 2025, which laid down a structured framework for negotiations across identified sectors.
During his State Visit to Israel, Prime Minister Narendra Modi, while addressing a special plenary session of the Knesset in Jerusalem on February 25, called for the early finalisation of an ambitious trade pact to unlock the untapped potential in bilateral commerce.
On February 24, Commerce and Industry Minister Piyush Goyal met the visiting Israeli delegation in New Delhi and stressed the need for a modern, comprehensive and future-ready agreement that would strengthen trade, innovation and investment flows.
Wide-ranging coverage
According to an official statement, the negotiations covered a broad spectrum of issues, including trade in goods and services, rules of origin, sanitary and phytosanitary measures (SPS), technical barriers to trade (TBT), customs procedures, intellectual property rights, digital trade and other key areas.
Both sides described the discussions as constructive and forward-looking, reaffirming their shared objective of negotiating a comprehensive, balanced and mutually beneficial agreement. They also agreed to continue inter-sessional engagements virtually ahead of the next in-person round.
Trade potential
Bilateral merchandise trade between the two countries stood at approximately $3.62 billion in FY 2024–25. Officials noted that significant untapped potential exists in sectors such as machinery, chemicals, textiles, agriculture, medical devices and advanced technologies.
The proposed FTA is expected to provide a stable and predictable framework for businesses in both countries, potentially boosting trade volumes and facilitating greater integration in high-value sectors.
The next round of negotiations is scheduled to take place in Israel in May 2026.