Bolstering Bilateral Ties: India and Israel Resume Free Trade Agreement Talks

India and Israel are moving forward with negotiations for a Free Trade Agreement (FTA), resuming talks that began in 2021. The agreement aims to boost trade by reducing tariffs and non-tariff barriers, promoting trade in services, and facilitating investments. Key areas include machinery, chemicals, textiles, and advanced technologies.

India and Israel are set to hold a new round of negotiations for a long-awaited free trade agreement (FTA) in May, according to India's commerce ministry. The meeting follows the conclusion of the initial four-day talks, with both nations exploring numerous areas including trade in goods, services, and intellectual property rights.

The proposed FTA, highlighted by Prime Minister Narendra Modi during his visit to Jerusalem, seeks to tap into the significant yet unrealised trade potential shared by the two countries. This includes sectors like machinery, chemicals, textiles, agriculture, and medical devices, with the potential to significantly impact bilateral trade.

The terms of reference agreed upon in earlier discussions aim to simplify customs procedures and eliminate tariffs, fostering innovation and technological cooperation. As of the 2024-25 period, trade between India and Israel experienced notable declines—India is pushing to reverse this trend and solidify its position as Israel's second-largest trading partner in Asia.

(With inputs from agencies.)