India and Israel on Thursday concluded the first round of negotiations for a proposed Free Trade Agreement (FTA) in New Delhi, with the second round of in-person talks scheduled for May 2026 in Israel, according to a statement from the commerce ministry.
The development coincides with Prime Minister Narendra Modi’s two-day state visit to Israel. Addressing a special plenary session of the Knesset in Jerusalem on February 25, Modi urged both sides to expedite the conclusion of an ambitious FTA to unlock the untapped trade potential between the two nations.
The first round of talks, held from February 23 to 26, followed the signing of the Terms of Reference (ToR) in November 2025. Commerce and Industry Minister Piyush Goyal met the visiting Israeli delegation on February 24 and emphasized closer cooperation to expand opportunities in trade, innovation and economic growth.
Negotiations covered a wide range of areas, including trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, intellectual property rights, and digital trade. Both sides described the discussions as constructive and forward-looking, reaffirming their commitment to negotiating a comprehensive, balanced and mutually beneficial agreement. They also agreed to continue virtual inter-sessional engagements ahead of the next in-person round.
The Israeli delegation’s visit follows the signing of a Bilateral Investment Agreement (BIA) on September 8, 2025, aimed at promoting and protecting foreign investments. The agreement was signed by Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich.
FTA negotiations between the two countries were first launched around 15 years ago, with the inaugural round held in New Delhi on May 26, 2010. Talks were paused after the eighth round in Israel in November 2013. Bilateral ties received a significant boost following Modi’s landmark visit to Israel from July 4 to 6, 2017 — the first by an Indian Prime Minister.
Since the establishment of diplomatic relations in 1992, bilateral trade has grown from about $200 million—largely driven by diamonds—to a peak of $10.77 billion (excluding defence) in 2022-23. However, amid regional security challenges and trade route disruptions, trade declined to $6.53 billion in 2023-24 and further to $3.63 billion in 2024-25, according to official data.
