The first round of negotiations for the India-Israel Free Trade Agreement (FTA) took place in New Delhi from February 23 to 26 and concluded successfully on Thursday. Discussions during the four-day negotiations covered various areas such as trade in goods and services, rules of origin, and intellectual property rights. Both countries expressed their commitment to negotiating a comprehensive and mutually beneficial agreement.
The Terms of Reference (ToR) for the FTA were signed in November 2025, setting the stage for structured discussions to enhance trade and economic cooperation. Prime Minister Narendra Modi, currently on a state visit to Israel, emphasized the need for a swift finalization of the FTA to unlock the trade potential between the two nations. Union Minister of Commerce and Industry Piyush Goyal also stressed the importance of close collaboration to explore new opportunities in trade and innovation.
Bilateral merchandise trade between India and Israel reached approximately USD 3.62 billion in the fiscal year 2024-25. The proposed FTA aims to boost trade flows by providing a stable framework for businesses in both countries. Key sectors like machinery, chemicals, textiles, and medical devices hold untapped potential for growth through this agreement. The successful conclusion of the first round signifies a shared commitment to deepen economic ties and foster new opportunities for stakeholders.
