First Round of India Israel FTA Negotiations Underway Till February 26
The first round of negotiations for the proposed India Israel Free Trade Agreement has commenced in New Delhi and will continue until February 26, the Ministry of Commerce and Industry said on Tuesday.The talks coincide with Prime Minister Narendra Modi’s visit to Israel on February 25 and 26, a timing the ministry described as providing renewed momentum to deepen economic engagement between the two countries.
The Terms of Reference for the agreement were signed in November 2025, establishing a structured framework to guide discussions on expanding trade and strengthening economic cooperation.
FTA Expected to Provide Certainty for Businesses, Including MSMEs
According to the ministry, the proposed FTA is expected to bring greater certainty and predictability for businesses, including micro, small and medium enterprises. The agreement is also aimed at unlocking new opportunities across multiple sectors by reducing trade barriers and improving market access.Total merchandise trade between India and Israel stood at 3.62 billion dollars in FY 2024 to 25, highlighting the existing economic relationship between the two nations.
Focus on Innovation, AI, Cybersecurity and High Tech Manufacturing
Both countries possess complementary strengths in innovation, science and technology, artificial intelligence, cybersecurity, high tech manufacturing, agriculture and services. The ministry believes that leveraging these synergies through a comprehensive trade agreement could significantly enhance bilateral trade.During the opening session, Commerce Secretary Rajesh Agrawal said the negotiations have begun at an opportune time, aligning with the Prime Minister’s visit to Israel. He underlined the strong potential for collaboration in advanced technology sectors and stated that the FTA would enable both sides to fully utilize emerging opportunities.
Wide Range of Trade Issues on the Negotiation Table
Technical experts from both countries are participating in detailed discussions during this round. The negotiations are covering a broad spectrum of trade related issues, including:- Trade in goods and services
- Rules of origin
- Sanitary and phytosanitary measures
- Technical barriers to trade
- Customs procedures and trade facilitation
- Intellectual property rights
On the Israeli side, Chief Negotiator Yifat Alon Perel, Senior Director for Trade Policy and Agreements and Deputy Trade Commissioner at Israel’s Ministry of Economy and Industry, said the proposed FTA has the potential to strengthen supply chains, enhance cooperation and open new markets for both nations.
As negotiations progress, the proposed India Israel Free Trade Agreement is expected to play a central role in shaping the next phase of bilateral economic engagement, particularly in technology driven and innovation led sectors.
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