The negotiations for the proposed India-Israel Free Trade Agreement (FTA) have commenced in New Delhi and are scheduled to run until February 26. This coincides with Prime Minister Narendra Modi’s upcoming visit to Israel on February 25-26. The Ministry of Commerce and Industry mentioned that the talks’ timing aims to strengthen economic relations between the two nations.
The Terms of Reference (ToR) for this agreement were formalized in November 2025, establishing a structured framework for discussions to enhance trade and economic collaboration. The FTA is anticipated to offer increased certainty and predictability to businesses, including micro, small, and medium enterprises (MSMEs), fostering new opportunities across various sectors.
India and Israel recorded a total merchandise trade of $3.62 billion in FY 2024-25, showcasing their complementary strengths in innovation, science, technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services. The Ministry is optimistic that this agreement could significantly elevate bilateral trade by capitalizing on these synergies.
Commerce Secretary Rajesh Agrawal, during the opening session, emphasized the promising prospects for cooperation in advanced technology fields. He noted that the FTA would enable both nations to fully exploit emerging opportunities. Technical experts from both countries are engaging in detailed discussions covering a wide array of topics during this round.
The discussions encompass various aspects such as trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical trade barriers, customs procedures, trade facilitation, and intellectual property rights. India’s Chief Negotiator Ajay Bhadoo stressed the importance of crafting a balanced and forward-thinking agreement that mirrors the evolving partnership between the two countries. Israel’s Chief Negotiator Yifat Alon Perel highlighted the FTA’s potential to fortify supply chains, boost cooperation, and open up new markets for both nations.
