In a significant step toward stronger economic bonds, India and Israel have commenced the inaugural round of Free Trade Agreement (FTA) negotiations in New Delhi. Starting February 23 and wrapping up on February 26, these discussions are perfectly timed before Prime Minister Narendra Modi’s upcoming visit to Israel on February 25-26, 2026.
The Commerce Ministry revealed that a Terms of Reference was inked last November in Tel Aviv to guide the process. Bilateral trade hit $3.62 billion in FY 2024-25, with both economies complementing each other in key areas. The FTA is expected to provide businesses, especially SMEs, with the certainty needed to propel trade further.
Negotiators will cover an extensive agenda: trade in goods and services, origin rules, health and plant safety standards, trade barriers, customs streamlining, and IP protections. During the opening remarks, Commerce Secretary Rajesh Agarwal highlighted synergies in cutting-edge fields like AI, cybersecurity, advanced manufacturing, agrotech, and services.
‘PM Modi’s visit offers a golden window to accelerate this momentum,’ Agarwal remarked. India’s Additional Secretary Ajay Bhadu stressed the need for equilibrium in the pact to build a forward-looking alliance. From Israel’s side, Yifat Alon Perel affirmed the robust ties and the agreement’s role in resilient supply chains and market expansion.
This negotiation round not only spotlights the strategic depth of India-Israel relations but also reaffirms New Delhi’s drive to align economic collaborations with its developmental goals and international outlook. Both parties are committed to crafting a fair, win-win accord that promises long-term prosperity.