India and Israel Launch First Round of Free Trade Agreement Negotiations

India-Israel Free Trade Agreement Negotiations Commence

India and Israel have commenced the first round of negotiations for the India-Israel Free Trade Agreement (FTA), a significant step towards enhancing bilateral trade and economic cooperation between the two nations. The negotiations, which began on February 23, 2026, and are scheduled to conclude on February 26, aim to create greater opportunities for businesses and people on both sides.

Key Highlights

• The FTA negotiations will cover various aspects, including trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedure and trade facilitation, intellectual property rights, among others.
• Total merchandise trade between the two countries stood at USD 3.62 billion in FY 2024-2025.
• The FTA is expected to enhance bilateral trade by providing certainty and predictability to businesses, including MSMEs.

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Recent Developments

• Prime Minister Narendra Modi will undertake a State visit to Israel on February 25-26, 2026, where he will meet Prime Minister Benjamin Netanyahu to review the significant progress made in the India-Israel Strategic Partnership.
• Finance Minister of Israel Bezalel Smotrich visited India in September 2025, where a Bilateral Investment Agreement (BIA) was signed to expand economic cooperation, protect investors, and boost cross-border investments.
• Piyush Goyal, Union Minister for Commerce and Industry, met a delegation from Israel on February 23, 2026, to discuss the FTA negotiations.

Background

• The FTA negotiations were launched in November 2025, when Piyush Goyal and his Israeli counterpart signed the Terms of Reference (ToR).
• The FTA is expected to strengthen supply chains, enhance cooperation, and open new markets for both countries, leveraging their complementarities in sectors such as innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services.

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