Big boost for India-Israel trade as FTA talks make key progress

The negotiations were held from July 20 to 23 at Vanijya Bhawan in New Delhi, where officials engaged in detailed discussions across all areas of the proposed agreement aimed at strengthening bilateral trade and economic cooperation.

The Terms of Reference (ToR), signed in November 2025, continue to provide the framework for negotiations across identified areas to deepen trade, investment and the overall economic partnership between the two countries.

According to official data, India-Israel merchandise trade stood at USD 3.93 billion during FY 2025-26.

The two countries share strong complementarities across several sectors, and the proposed FTA is expected to unlock significant opportunities to boost bilateral trade, investment and economic integration.

During the latest round of talks, technical experts from both sides held dedicated sessions on a wide range of issues, including:

Trade in goods

Trade in services

Rules of origin

Sanitary and phytosanitary (SPS) measures

Technical barriers to trade (TBT)

Intellectual property rights (IPR)

Economic cooperation

Other chapters under the proposed agreement

Officials described the discussions as constructive and forward-looking, with both sides engaging in detailed technical deliberations to narrow differences and identify areas of convergence.

At the opening session, Ajay Bhadoo, Additional Secretary in India's Department of Commerce and the country's Chief Negotiator for the FTA, reaffirmed India's commitment to negotiating a balanced, comprehensive and mutually beneficial agreement that would further strengthen bilateral trade and economic ties.

Israel's Chief Negotiator, Yifat Alon Perel, Senior Director, Trade Policy & Agreements and Deputy Trade Commissioner at the Foreign Trade Administration under the Ministry of Economy and Industry, welcomed the progress made since the first round of negotiations and stressed the importance of maintaining momentum towards concluding an ambitious and mutually beneficial agreement.

Both countries reiterated their commitment to working towards the early conclusion of the proposed FTA, which is expected to further deepen trade, investment and economic cooperation between India and Israel.