India, Israel begin FTA negotiations ahead of Modi's visit

Ahead of Prime Minister Narendra Modi's state visit to Israel tomorrow (25 February), India and Israel have launched negotiations in New Delhi for a bilateral Free Trade Agreement (FTA) covering goods and services.

The first round of talks will continue until 26 February, following the finalisation of the Terms of Reference (ToR) in November last year, which established a structured framework for discussions on enhancing trade and economic cooperation.

Total merchandise trade between the two countries stood at $3.62 billion in FY 2024-25. India and Israel share complementarities across multiple sectors, and the FTA is expected to provide greater certainty and predictability for businesses, including MSMEs, while further boosting bilateral trade.

Technical experts from both sides will cover aspects such as trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, trade facilitation, and intellectual property rights, the Commerce Ministry said in a statement today (24 February).

During the opening session, Indian Commerce Secretary Rajesh Agrawal said the timing of the FTA negotiations coincided with Prime Minister Modi's visit to Israel.

"There are significant opportunities in sectors such as innovation, science and technology, artificial intelligence, cyber security, high-tech manufacturing, agriculture and services," he said. 

"The FTA will enable both countries to harness and fully leverage these opportunities," he added.

Ajay Bhadoo, India's chief negotiator and additional secretary in the Commerce Ministry, said the aim is to establish a balanced FTA that builds a forward-looking framework for an evolving partnership.

Yifat Alon Perel, Israel's chief negotiator, senior director of Trade Policy & Agreements and Deputy Trade Commissioner in the Ministry of Economy and Industry, said the FTA could strengthen supply chains and open new markets for both countries.