India–Israel FTA Talks Kick Off, Trade Deal Likely To Be Signed By Year-End

New Delhi, Feb 25 (KNN) The first round of negotiations for the India–Israel Free Trade Agreement (FTA) has commenced, coinciding with Prime Minister Narendra Modi's February 25-26 visit to the Middle East nation.

During this round, technical experts from both sides will engage in sessions covering various aspects of FTA such as trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedure and trade facilitation and intellectual property rights.

India and Israel had sifgned the Terms of Reference (ToR) in November 2025, providing a structured framework for discussions across identified priority areas to enhance trade and economic cooperation between the two countries.

Israel's Ambassador to India Reuven Azar has indicated that the first round of negotiations will be completed in coming weeks and a trade deal could be signed by the end of the year.

Bilateral Trade Snapshot

Total merchandise trade between India and Israel stood at USD 3.62 billion in FY 2024–25. Both countries share sectoral complementarities, and the proposed FTA is expected to provide certainty and predictability to businesses, boost bilateral trade flows, support MSMEs in accessing new markets and strengthen long-term economic engagement.

Leadership Perspectives

During the opening session of the trade talk in New Delhi, Rajesh Agrawal, Commerce Secretary of India, noted that the negotiations come at an opportune moment, highlighting significant opportunities in innovation and science & technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture and services. 

He emphasised that the FTA would enable both nations to fully leverage these opportunities.

India’s Chief Negotiator, Ajay Bhadoo, Additional Secretary in the Department of Commerce, stressed the importance of building a balanced, forward-looking framework for an evolving partnership.

On the Israeli side, Chief Negotiator Yifat Alon Perel, Senior Director (Trade Policy & Agreements) and Deputy Trade Commissioner at Israel’s Ministry of Economy and Industry, said the FTA has the potential to strengthen supply chains, deepen cooperation, and open new markets for both countries.

Strategic Significance

The launch of negotiations underscores the strategic importance of the India–Israel bilateral relationship and reflects India’s broader push to deepen economic partnerships aligned with national development priorities and global aspirations.

Both sides are working toward concluding a balanced and mutually beneficial agreement aimed at expanding trade, strengthening supply chains, and enhancing long-term economic collaboration.

(KNN Bureau)