In Shorts
- India and Israel begin first round of Free Trade Agreement talks in New Delhi from February 23 to 26, 2026
- Negotiations aim to reduce tariffs and improve trade in goods, services, and investments
- Talks coincide with PM Narendra Modi’s official visit to Israel this week
India and Israel have launched the first round of negotiations for a proposed Free Trade Agreement, marking a significant step toward strengthening bilateral economic relations between the two countries. The discussions began in New Delhi on February 23 and are scheduled to continue until February 26, 2026.
The negotiations are taking place just ahead of the official visit of Narendra Modi to Israel, highlighting the growing importance of trade diplomacy in the strategic partnership shared by both nations.
Officials said the proposed agreement is expected to boost commercial engagement by reducing or eliminating import duties on a wide range of goods traded between India and Israel. In addition to improving market access, the pact is also expected to simplify customs procedures and remove non tariff barriers that currently impact bilateral trade flows.
The Free Trade Agreement will also focus on promoting investments, easing norms for trade in services, and enhancing cooperation in areas such as innovation and technology transfer. Technical experts from both countries are holding detailed discussions covering multiple aspects including trade facilitation measures, intellectual property rights, sanitary standards, and rules of origin.
Negotiations for a similar agreement had been attempted earlier, with eight rounds of talks taking place until October 2021 before discussions were paused. The current round marks the resumption of those efforts after both sides finalised the Terms of Reference in November last year to create a structured framework for future negotiations.
The renewed focus on trade cooperation comes at a time when bilateral trade between India and Israel has witnessed a notable decline. During the 2024 to 2025 financial year, India’s exports to Israel dropped sharply, while imports from the country also recorded a significant fall, underlining the need for stronger economic engagement through a comprehensive trade pact.
Once finalised, the proposed agreement is expected to enhance supply chain integration and create new business opportunities across sectors, further cementing the economic partnership between the two nations.
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