The first round of negotiations for the India-Israel Free Trade Agreement (FTA) began on February 23, 2026, in New Delhi and is scheduled to continue until February 26, 2026.
The Terms of Reference (ToR) for these discussions were signed in November 2025, establishing a structured framework to enhance trade and economic cooperation between the two countries.
Total merchandise trade between India and Israel reached USD 3.62 billion in the fiscal year 2024-2025. The two nations possess complementary strengths across multiple sectors, and the FTA aims to further increase bilateral trade by providing businesses, including micro, small, and medium enterprises (MSMEs), with certainty and predictability.
During this negotiation round, technical experts from both sides will engage in sessions that cover various aspects of the FTA, including trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, trade facilitation, and intellectual property rights.
In the opening session, Commerce Secretary Rajesh Agrawal emphasized that the FTA negotiations were initiated at a timely moment, coinciding with Prime Minister Narendra Modi’s visit to Israel from February 25 to 26, 2026. He highlighted significant opportunities in sectors such as innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services. He stressed that the FTA would enable both countries to fully harness and leverage these opportunities.
Ajay Bhadoo, India’s Chief Negotiator and Additional Secretary of the Department of Commerce, reiterated the importance of this engagement for both nations. He encouraged both parties to work towards a balanced agreement to establish a forward-looking framework for their evolving partnership. Ms. Yifat Alon Perel, Chief Negotiator of Israel for the FTA and Senior Director of Trade Policy & Agreements at the Ministry of Economy and Industry, expressed that the strong relationship between the two countries could further enhance supply chains, boost cooperation, and open new markets.
This engagement underscores the strategic significance of the India-Israel bilateral relationship and reinforces India’s commitment to strengthening economic partnerships in line with both national priorities and global aspirations. Both sides are working towards concluding a balanced and mutually beneficial agreement.
