India, Israel launch first round of FTA talks

New Delhi: India and Israel on Tuesday began the first round of negotiations for a proposed Free Trade Agreement (FTA) in the national capital, with discussions scheduled from February 23 to 26, 2026.

The talks follow the signing of the Terms of Reference (ToR) in November 2025, which laid down a formal framework to strengthen bilateral trade and economic cooperation.

According to the Ministry of Commerce and Industry, technical teams from both sides are holding discussions on trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, trade facilitation and intellectual property rights.


During the opening session, Commerce Secretary Rajesh Agrawal said the negotiations had commenced at an opportune time, coinciding with Prime Minister Narendra Modi’s visit to Israel from February 25–26. He highlighted opportunities in sectors such as innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture and services.

India’s Chief Negotiator Ajay Bhadoo, Additional Secretary in the Department of Commerce, stressed the need for a balanced and forward-looking agreement. Israel’s Chief Negotiator Yifat Alon Perel, Senior Director (Trade Policy and Agreements), said the pact has the potential to strengthen supply chains and open new markets for both countries.

Bilateral merchandise trade between India and Israel stood at USD 3.62 billion in FY 2024–25. While trade has traditionally been dominated by diamonds, petroleum products and chemicals, both sides are seeking to expand cooperation in high-technology and emerging sectors.

India and Israel had earlier held eight rounds of talks for a similar agreement, with the last round conducted in October 2021 before negotiations stalled. The current round marks the resumption of efforts to conclude a mutually beneficial trade pact.