New Delhi : India and Israel have formally begun negotiations for a Free Trade Agreement, with the first round of discussions underway in New Delhi from February 23 to 26.
The talks follow the signing of the Terms of Reference in November 2025, which set out the framework and scope for the negotiations. Both sides are aiming to strengthen trade and economic ties through a structured and comprehensive agreement.
Merchandise trade between India and Israel stood at USD 3.62 billion in the financial year 2024-25. Officials from both countries believe that a well-structured FTA can significantly expand this figure by providing greater policy certainty and market access for businesses, including micro, small and medium enterprises. The agreement is expected to build on sectoral complementarities and unlock new commercial opportunities.
Technical teams are currently engaged in detailed discussions covering trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, trade facilitation, intellectual property rights and other related matters.
Commerce Secretary Rajesh Agrawal, addressing the opening session, described the start of negotiations as timely, particularly as Prime Minister Narendra Modi is scheduled to visit Israel on February 25 and 26. He highlighted opportunities for collaboration in innovation, science and technology, artificial intelligence, cybersecurity, high-technology manufacturing, agriculture and services. According to him, the proposed agreement would help both countries fully leverage their strengths in these areas.
India’s Chief Negotiator Ajay Bhadoo, Additional Secretary in the Department of Commerce, underlined the importance of shaping a balanced and forward-looking agreement that reflects the growing strategic partnership between the two nations.
On the Israeli side, Chief Negotiator Yifat Alon Perel, Senior Director for Trade Policy and Agreements and Deputy Trade Commissioner in the Foreign Trade Administration, Ministry of Economy and Industry, said the strong bilateral relationship creates a solid foundation for deeper economic cooperation. She noted that the FTA could enhance supply chain resilience and open new market opportunities for businesses in both countries.
The launch of FTA negotiations signals a renewed push in India-Israel economic engagement. Both sides have expressed their commitment to concluding a balanced and mutually beneficial agreement that aligns with their broader strategic and economic priorities.
