Bilateral merchandise trade between India and Israel reached USD 3.62 billion in FY 2024-25.
First Round of India-Israel FTA Talks Launched Amid PM Modi’s Israel Visit
India and Israel have launched the first round of negotiations for their Free Trade Agreement (FTA) in New Delhi. The talks, which started on 23 February 2026, are scheduled to continue until 26 February 2026. They follow the Terms of Reference signed in November 2025, which established a framework to strengthen trade and economic cooperation between the two nations.
Bilateral merchandise trade between India and Israel reached USD 3.62 billion in FY 2024-25. With complementary strengths across multiple sectors, the FTA is expected to boost trade and provide businesses, including MSMEs, with greater predictability and certainty. This agreement could further enhance market access for emerging sectors and strengthen supply chains between both countries.
Key areas under discussion during this round include:
- Trade in goods and services
- Rules of origin
- Sanitary and phytosanitary measures
- Technical barriers to trade
- Customs procedures and facilitation
- Intellectual property rights
Commerce Secretary Shri Rajesh Agrawal highlighted that the negotiations coincide with Prime Minister Narendra Modi’s visit to Israel on 25-26 February 2026. He emphasised opportunities in innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services, noting that the FTA would help both nations leverage these sectors fully.
India’s Chief Negotiator, Shri Ajay Bhadoo, emphasised the importance of achieving a balanced agreement. Israel’s Chief Negotiator, Ms. Yifat Alon Perel, underscored the FTA’s potential to strengthen supply chains, enhance cooperation, and open new markets.
The talks reflect the strategic significance of India-Israel relations and signal a commitment to building a forward-looking, mutually beneficial trade partnership.
