India and Israel Advance Free Trade Agreement Talks

India and Israel have complementary strengths in sectors such as technology, innovation, agriculture, manufacturing, services and advanced industrial products.

India and Israel have completed the second round of negotiations for their proposed Free Trade Agreement, with officials from both countries discussing a wide range of trade rules and market-access issues in New Delhi from 20 to 23 July. The four-day talks were held at Vanijya Bhawan and focused on shaping an agreement that can expand trade, investment and economic cooperation while addressing the priorities of both sides.

Technical teams held detailed sessions on trade in goods and services, rules of origin, customs procedures, trade facilitation, intellectual property rights, sanitary and phytosanitary measures, and technical barriers to trade. The negotiations also covered economic cooperation and other chapters that will form part of the proposed agreement. Officials worked to narrow differences and identify areas where the two countries can build common ground. The Terms of Reference signed in November 2025 remain the framework guiding the negotiations, setting out the areas that India and Israel will address as they develop the FTA.

Trade links offer room for expansion

Merchandise trade between India and Israel reached USD 3.93 billion in the 2025-26 financial year. Both countries see strong potential to grow this figure through closer business links and better access to each other's markets.

India and Israel have complementary strengths in sectors such as technology, innovation, agriculture, manufacturing, services and advanced industrial products. A trade agreement could support investment flows, help businesses navigate trade procedures more easily and create new opportunities for exporters.

Negotiators underline balanced outcomes

India's Chief Negotiator, Additional Secretary in the Department of Commerce Ajay Bhadoo, said India remains committed to a balanced and comprehensive agreement that strengthens the wider economic relationship.

Israel's Chief Negotiator Yifat Alon Perel, Senior Director for Trade Policy and Agreements and Deputy Trade Commissioner at the Ministry of Economy and Industry, welcomed the progress since the first round. She stressed the importance of sustaining momentum as the countries work toward an ambitious agreement that delivers value for both economies.

Focus turns to an early agreement

The second round has added pace to a process that both governments view as important for deepening their economic partnership. The negotiations are expected to continue across technical and policy areas as officials work through issues that affect trade, investment and regulatory cooperation. Both sides have reaffirmed their intention to conclude an FTA that is practical, balanced and beneficial for businesses and consumers in India and Israel.