New Delhi: India and Israel have formally launched the first round of negotiations for a proposed Free Trade Agreement, marking a significant step in strengthening their economic partnership. The discussions began in New Delhi on 23 February 2026 and will continue until 26 February 2026, setting the stage for a structured dialogue on expanding bilateral trade and investment ties.
The groundwork for these negotiations was laid in November 2025 with the signing of the Terms of Reference, which established a clear framework for engagement across identified sectors. The agreement aims to provide greater predictability and stability for businesses in both countries, including micro, small and medium enterprises. In the financial year 2024 to 2025, total merchandise trade between the two nations stood at 3.62 billion US dollars, highlighting the scope for further expansion.
Technical experts from both sides are participating in detailed sessions covering trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, trade facilitation, and intellectual property rights. These discussions are intended to build a comprehensive and balanced framework that reflects the evolving nature of the partnership.
Commerce Secretary Rajesh Agrawal noted that the negotiations coincide with Prime Minister Narendra Modi’s visit to Israel, calling it a timely moment to advance economic cooperation. He highlighted opportunities in innovation, science and technology, artificial intelligence, cybersecurity, high technology manufacturing, agriculture and services as key areas of mutual strength.
India’s chief negotiator Ajay Bhadoo stressed the importance of crafting a forward looking and balanced agreement. His Israeli counterpart, Yifat Alon Perel, emphasised that closer economic integration could strengthen supply chains and open new markets for both countries.
The launch of FTA talks underscores the strategic depth of India Israel relations and reflects a shared commitment to building a resilient and mutually beneficial economic partnership.
