The initial round of talks occurred in New Delhi from February 23 to 26. During these discussions, technical experts from both nations addressed a variety of topics, including trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical trade barriers, customs procedures, trade facilitation, and intellectual property rights.
Ajay Bhadoo, India’s Chief Negotiator and Additional Secretary (Commerce), along with Israel’s Chief Negotiator, Yifat Alon Perel, who is the Senior Director of Trade Policy & Agreements and Deputy Trade Commissioner at Israel’s Foreign Trade Administration, noted that the proposed agreement could bolster supply chains, improve bilateral cooperation, and open new market opportunities for enterprises in both countries.
The intention of the proposed FTA is to enhance market access, gradually remove tariff barriers, and reduce non-tariff barriers through expedited approvals and simplified market entry.
Negotiations are also expected to include topics such as investment, customs simplification, technology transfer, defense, space, fintech, agritech, artificial intelligence, cybersecurity, research and development, innovation, and drip irrigation.
The Terms of Reference (ToR) for the proposed agreement were signed in November 2025 in Tel Aviv, in the presence of Commerce and Industry Minister Piyush Goyal and Israel’s Economy Minister Nir Barkat, establishing the groundwork for official negotiations.
At that time, Goyal stated that an FTA would benefit India’s services sector, especially in IT, tourism, and business process outsourcing (BPO), as well as create opportunities for skilled Indian workers in Israel.
He also mentioned that eight to ten Indian firms had been shortlisted to work on Tel Aviv’s ₹4.5 lakh crore metro project after pre-qualification bids were called for.
Describing the proposed agreement as a “force multiplier” for bilateral relations, Goyal indicated that it represented a new chapter in the India-Israel partnership. He further pointed out that Israel had not requested export access in sensitive areas like dairy, agriculture, and fisheries, which are still protected by India.
In FY25, India and Israel achieved merchandise trade amounting to $3.62 billion. The proposed FTA aims to enhance economic connections by broadening trade, investment, and collaboration across various strategic sectors.
First Published: Jul 17, 2026 6:17 PM IST
