India and Israel Begin New Chapter with Free Trade Agreement Talks

India and Israel have initiated discussions for a free trade agreement aimed at enhancing trade and investment ties. The talks seek to remove trade barriers and facilitate service exchanges, coinciding with India's efforts to boost economic relations amid fluctuating trade figures with Israel.

India and Israel have commenced negotiations for a free trade agreement (FTA) with the goal of strengthening commercial ties and encouraging investments, according to an official announcement. The four-day discussions are expected to conclude on February 26.

These negotiations follow the signing of the terms of reference (ToR) in November last year, laying the foundation for the formal talks. The agreement aims to significantly reduce or eliminate import duties on a vast array of goods and introduce measures to boost trade in services and investments.

Prime Minister Narendra Modi's upcoming visit to Israel underscores the importance of these discussions. Despite previous stalled attempts, both countries are keen to revitalize their trade relations. In the fiscal year 2024-25, trade figures indicate a decline in imports and exports, reflecting the need for renewed economic engagement.

(With inputs from agencies.)