The first round of negotiations for the India–Israel Free Trade Agreement (FTA) commenced on February 23, 2026, in New Delhi and will continue until February 26, 2026. The talks follow the signing of the Terms of Reference (ToR) in November 2025, which laid out a structured framework to advance discussions on key areas of trade and economic collaboration.
The negotiations come at a significant moment, coinciding with Prime Minister Narendra Modi’s visit to Israel from February 25–26, underlining the political and strategic momentum behind the proposed agreement.
Bilateral Trade and Economic Potential
Total merchandise trade between India and Israel stood at USD 3.62 billion in FY 2024–25. Officials from both sides highlighted that the two countries share strong complementarities across multiple sectors.
The proposed FTA is expected to act as a catalyst for expanding bilateral trade by offering certainty and predictability to businesses, including micro, small and medium enterprises (MSMEs).
Key Areas Under Discussion
During the current round, technical experts from both countries are holding detailed sessions covering a wide range of trade-related issues, including:
- Trade in goods
- Trade in services
- Rules of origin
- Sanitary and phytosanitary measures
- Technical barriers to trade
- Customs procedures and trade facilitation
- Intellectual property rights
These discussions aim to create a comprehensive and balanced framework to support long-term economic cooperation.
Officials Highlight Strategic Opportunities
At the opening session, Commerce Secretary Rajesh Agrawal said the FTA talks had begun at an opportune time, stressing the importance of the agreement in strengthening bilateral ties.
He pointed to significant opportunities in sectors such as innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services, noting that the FTA would allow both countries to fully leverage these strengths.
Ajay Bhadoo, India’s Chief Negotiator for the FTA, emphasised the importance of working towards a balanced and forward-looking agreement that reflects the evolving partnership between the two nations.
On the Israeli side, Yifat Alon Perel, Chief Negotiator for Israel, said the FTA has the potential to strengthen supply chains, enhance cooperation, and open new markets for businesses in both countries.
Strengthening a Strategic Partnership
The launch of negotiations underscores the strategic importance of the India–Israel bilateral relationship and reflects India’s broader commitment to strengthening economic partnerships aligned with national priorities and global aspirations.
Both sides reiterated their intention to conclude a balanced, mutually beneficial, and future-ready FTA that supports sustained growth and deeper economic integration.