The first round of negotiations for the proposed India–Israel Free Trade Agreement (FTA), held from 23 to 26 February 2026 in New Delhi, has concluded on a positive and forward-looking note. The talks mark a significant step toward deepening economic engagement between India and Israel, reflecting both nations’ commitment to expanding trade, investment, and technological cooperation.
The negotiations were conducted under a structured framework established by the signing of the Terms of Reference (ToR) in November 2025. The ToR laid down the broad contours for engagement, identifying priority areas and setting the stage for comprehensive discussions aimed at enhancing bilateral trade and economic collaboration.
The momentum surrounding the FTA negotiations has been reinforced at the highest political level. During his two-day State Visit to Israel, Prime Minister Shri Narendra Modi, while addressing a Special Plenary session of the Knesset in Jerusalem on 25 February 2026, emphasized the need for the early finalization of an ambitious and forward-looking Free Trade Agreement. He underlined the significant untapped trade potential between the two countries and expressed confidence that a modern trade pact could unlock new avenues of growth and partnership.
On 24 February 2026, Union Minister of Commerce and Industry Shri Piyush Goyal met with the visiting Israeli delegation in New Delhi. He highlighted the importance of close collaboration between the two sides to unlock fresh opportunities in trade, innovation, and economic growth. The Minister encouraged negotiators to work toward a modern, comprehensive, and future-ready agreement that aligns with the evolving global economic landscape and strengthens the valued India–Israel partnership.
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Over the course of four days, negotiating teams engaged in detailed discussions across a wide range of subjects. These included trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures and trade facilitation, intellectual property rights, digital trade, and other key chapters integral to a comprehensive FTA. The discussions were described as constructive and forward-looking, with both sides reaffirming their objective of achieving a balanced and mutually beneficial agreement.
Importantly, both countries agreed to maintain the pace of engagement through virtual inter-sessional meetings ahead of the next round of in-person negotiations, scheduled to be held in Israel in May 2026. This continuity underscores the seriousness with which both governments are approaching the process.
Bilateral merchandise trade between India and Israel stood at approximately USD 3.62 billion in FY 2024–25, highlighting substantial scope for expansion. The proposed FTA is expected to provide a stable, transparent, and predictable framework that will enhance business confidence and facilitate smoother trade flows. Both sides identified significant untapped potential in sectors such as machinery, chemicals, textiles, agriculture, medical devices, and advanced technologies.
The successful conclusion of the first round of negotiations signals a shared strategic vision to elevate economic ties to a new level. As both nations continue discussions, the India–Israel FTA holds promise not only for boosting trade volumes but also for fostering innovation-driven growth and creating new opportunities for businesses and stakeholders in both countries.
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