The first round of free trade agreement (FTA) negotiations between Israel and India has officially begun in New Delhi and will run from February 23 to February 26, 2026. By lowering or doing away with import taxes on commodities, loosening trade regulations for services, and encouraging investments, the negotiations seek to greatly strengthen bilateral commercial connections.
The negotiations come after the Terms of Reference (ToR) were signed in November 2025, with key areas of focus such as innovation collaboration, technology transfer, commodity market access, investment, and customs process simplification. Technical experts from both sides are participating in sessions that cover issues like laws and origin, commerce in goods and services, sanitary regulations, and property rights.
Significant prospects were emphasized by Commerce Secretary Rajesh Agrawal in fields including innovation, science and technology, cybersecurity, artificial intelligence, high-tech manufacturing, agriculture, and services. Yifat Alon Perel, Senior Director for Trade Policy and Agreements, represents Israel in the negotiations, while Additional Secretary Ajay Bhadoo is the lead negotiator for India.
These discussions are strategically important as Prime Minister Narendra Modi visits Israel on February 25-26. The two countries had previously held eight negotiation rounds through October 2021, but talks subsequently stalled. During 2024-25, bilateral trade stood at USD 3.62 billion, with India’s exports to Israel declining 52% to USD 2.14 billion. India remains Israel’s second-largest trading partner in Asia, with trade dominated by diamonds, petroleum products, chemicals, electronic machinery, and medical equipment. Commerce Minister Piyush Goyal has stated the FTA will provide greater market access, capital flow, and predictability in economic engagement.
