India-Israel Free Trade Agreement Negotiations Begin in New Delhi
The first round of negotiations for the India-Israel Free Trade Agreement (FTA) kicked off on February 23, 2026, in New Delhi, and is set to continue until February 26, 2026. This initiative follows the signing of the Terms of Reference (ToR) in November 2025, which established a structured framework to address various trade and economic cooperation areas.
Merchandise trade between India and Israel reached approximately USD 3.62 billion during the fiscal year 2024-2025. Both nations possess complementary strengths in various sectors, and this FTA aims to further boost bilateral trade. By providing stability and predictability, the agreement is expected to benefit businesses, particularly micro, small, and medium enterprises (MSMEs).
Technical Discussions Underway
This negotiation round will involve technical experts from both countries engaging in in-depth discussions on numerous aspects of the FTA. Key topics include trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, trade facilitation, and intellectual property rights.
Strategic Opportunities Highlighted
During the opening session, Commerce Secretary Shri Rajesh Agrawal emphasized the favorable timing of the negotiations, coinciding with Prime Minister Shri Narendra Modi’s visit to Israel on February 25-26, 2026. He pointed out significant opportunities in fields like innovation, science and technology, artificial intelligence, cybersecurity, and agriculture. Agrawal spoke of the FTA being a means for both nations to capitalize on these growing sectors.
Shri Ajay Bhadoo, Chief Negotiator of India and Additional Secretary in the Department of Commerce, reiterated the importance of establishing a fair and balanced agreement. He encouraged constructive collaboration to develop a forward-looking framework. On the other hand, Ms. Yifat Alon Perel, Chief Negotiator of Israel and Senior Director of Trade Policy & Agreements, highlighted the close relationship shared by the two countries and expressed confidence that the FTA could enhance supply chains, strengthen cooperation, and open new markets.
Commitment to Partnership
This negotiation process underscores the strategic significance of the India-Israel bilateral relationship and reinforces India’s dedication to enhancing economic partnerships in alignment with national priorities and global aspirations. Both countries aim to finalize a balanced and mutually beneficial agreement, marking a new chapter in their economic collaboration.
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