New Delhi is buzzing with diplomatic and economic activity as India and Israel launched the first round of negotiations for a Free Trade Agreement (FTA) on February 23. This pivotal move comes just ahead of Prime Minister Narendra Modi’s scheduled visit to Israel on February 25-26, 2026, signaling a deepening of ties between the two nations.
The Commerce and Industry Ministry announced that these talks, set to continue until February 26, aim to boost bilateral trade and economic cooperation. Last November, both countries signed a Terms of Reference (ToR) in Tel Aviv, laying the groundwork for these discussions. In the fiscal year 2024-25, trade between India and Israel reached $3.62 billion, highlighting their complementary strengths across multiple sectors.
Experts from both sides will delve into critical areas including goods and services trade, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, trade facilitation, and intellectual property rights. Commerce Secretary Rajesh Agarwal, at the inaugural session, emphasized the strategic timing of these talks, coinciding with PM Modi’s trip.
Agarwal pointed to vast opportunities in innovation, science and technology, AI, cybersecurity, high-tech manufacturing, agriculture, and services. ‘This FTA will empower both nations to fully capitalize on these prospects,’ he stated. Lead negotiator Ajay Bhadu urged a balanced agreement to forge a visionary framework for an evolving partnership.
Israel’s chief negotiator, Yifat Alon Perel, Senior Director for Trade Policy and Agreements, echoed the sentiment, noting the close relations and the FTA’s potential to strengthen supply chains, enhance collaboration, and open new markets. This initiative underscores India’s commitment to fortifying economic partnerships aligned with national priorities and global aspirations, paving the way for a mutually beneficial deal.