India–Israel FTA Talks Conclude First Round in New Delhi

The first round of negotiations for the proposed India–Israel Free Trade Agreement (FTA) concluded successfully in New Delhi on February 26, 2026, marking a significant step toward deepening bilateral trade and economic cooperation between the two strategic partners.

The four-day negotiations, held from February 23 to 26, followed the signing of the Terms of Reference (ToR) in November 2025, which laid down a structured framework for discussions across key trade domains.

PM Modi Calls for Early Finalisation

During his ongoing two-day State Visit to Israel, Prime Minister Shri Narendra Modi, addressing a Special Plenary session of the Knesset in Jerusalem on February 25, called for the early conclusion of an ambitious FTA to unlock untapped trade potential between the two nations.

His remarks underscored the political momentum behind the negotiations and signalled both sides' intent to fast-track discussions.

Piyush Goyal Pushes for Modern, Future-Ready Pact

On February 24, Union Minister of Commerce and Industry Shri Piyush Goyal met the visiting Israeli delegation and emphasized the need for a modern, comprehensive and forward-looking trade agreement.

He highlighted that closer collaboration in trade, innovation and technology would strengthen the valued India–Israel partnership and create new avenues for growth.

Wide-Ranging Negotiations

Negotiators from both sides engaged in detailed discussions across a broad spectrum of chapters, including:

• Trade in goods and services

• Rules of origin

• Sanitary and phytosanitary (SPS) measures

• Technical barriers to trade (TBT)

• Customs procedures and trade facilitation

• Intellectual property rights (IPR)

• Digital trade

• Other regulatory and cooperation areas

Officials described the talks as constructive and forward-looking, with both sides reaffirming their commitment to concluding a comprehensive, balanced and mutually beneficial agreement.

The two countries also agreed to continue virtual inter-sessional engagements to maintain momentum. The next in-person round of negotiations will take place in May 2026 in Israel.

Trade at USD 3.62 Billion, Scope for Expansion

Bilateral merchandise trade between India and Israel stood at approximately USD 3.62 billion in FY 2024–25, reflecting steady engagement but also highlighting significant untapped potential.

Both sides identified promising growth opportunities in sectors such as:

• Machinery and engineering goods

• Chemicals and pharmaceuticals

• Textiles and apparel

• Agriculture and agri-technology

• Medical devices

• Advanced technologies and innovation-driven sectors

An FTA is expected to provide a stable and predictable policy environment, reduce tariff and non-tariff barriers, and encourage deeper business-to-business collaboration.

Toward a Strategic Economic Partnership

The successful conclusion of the first negotiation round signals a shared strategic intent to elevate economic ties in line with the broader India–Israel partnership, which spans defence, technology, agriculture and innovation.

Officials noted that a comprehensive FTA would not only boost trade flows but also strengthen supply chain integration, promote investment and support innovation-driven collaboration between enterprises in both countries.

With political backing at the highest level and structured negotiations underway, the India–Israel FTA is poised to become a key pillar of bilateral economic engagement in the coming years.