India–Israel FTA Talks Kick Off With Strong Momentum
India and Israel have taken a significant step towards deepening their economic partnership, with the first round of negotiations for the proposed India–Israel Free Trade Agreement (FTA) concluding successfully in New Delhi.
Held from February 23–26, the talks marked the formal launch of negotiations under the Terms of Reference (ToR) signed in November 2025, setting the stage for a structured and comprehensive engagement aimed at unlocking untapped trade potential between the two nations.
The negotiations coincided with Prime Minister Narendra Modi’s State Visit to Israel, where he addressed a Special Plenary session of the Knesset in Jerusalem on February 25. In his address, the Prime Minister called for the early finalization of an ambitious and forward-looking FTA to fully realize the vast trade and innovation synergies between the two countries.
Meanwhile in New Delhi, Union Commerce and Industry Minister Piyush Goyal met the visiting Israeli delegation on February 24, highlighting the need for a modern, comprehensive, and future-ready trade pact. He emphasized closer collaboration to unlock new opportunities in trade, technology, and growth, reinforcing what he described as a valued and strategic partnership.
Wide-Ranging Agenda
Over four days of discussions, negotiating teams from both sides engaged constructively across a broad spectrum of issues. These included trade in goods and services, rules of origin, sanitary and phytosanitary (SPS) measures, technical barriers to trade (TBT), customs procedures and trade facilitation, intellectual property rights and digital trade and emerging sectors
Officials described the talks as constructive and forward-looking, with both sides reiterating their goal of achieving a balanced and mutually beneficial agreement. To maintain momentum, India and Israel have agreed to hold inter-sessional virtual engagements ahead of the next in-person round, scheduled for May 2026 in Israel.
Unlocking Untapped Trade Potential
Bilateral merchandise trade between India and Israel stood at approximately USD 3.62 billion in FY 2024–25. While the trade relationship has been steady, policymakers on both sides believe it is far below potential.
Key sectors identified for expansion include textiles and technical textiles. machinery and engineering goods, chemicals and specialty materials, agriculture and agri-tech, medical devices and advanced and digital technologies
The proposed FTA is expected to create a stable and predictable framework for businesses, reduce trade barriers, and catalyze deeper integration in innovation-driven sectors.
With the successful completion of the first round, both countries have signaled a clear political and economic commitment to fast-track negotiations and elevate the partnership to a new level. If concluded swiftly, the India–Israel FTA could emerge as a strategic pillar in both nations’ trade diversification strategies amid evolving global supply chains.
