India and Israel Set to Advance Free Trade Agreement

India and Israel are preparing to meet and discuss a Free Trade Agreement (FTA) aimed at enhancing bilateral trade and investment. With India's exports to Israel experiencing a significant dip, the agreement seeks to revitalize trade, particularly in sectors like electronics, communication, and medical equipment.

India and Israel are scheduled to convene in the coming month to discuss the proposed Free Trade Agreement (FTA), according to an official statement made on Wednesday. The FTA aims to enhance bilateral trade and investments between the two countries.

In a collaborative move last November, both nations agreed on terms of reference to initiate formal negotiations. Expectations are set for the January meeting, where key structuring issues related to the FTA are anticipated to be addressed. Trade representatives from Israel are slated to arrive in India to partake in these discussions.

The fiscal year 2024-25 saw India's exports to Israel drop by 52%, totaling USD 2.14 billion, compared to USD 4.52 billion in the previous fiscal year. Imports also declined by 26.2%, amounting to USD 1.48 billion. Despite these declines, India remains Israel's second-largest trading partner in Asia, with significant trade in diamonds, petroleum, high-tech products, and machinery.

(With inputs from agencies.)