Indian Economy News

India and Israel launch first round of Negotiations for Free Trade Agreement

India and Israel launched the first round of negotiations for the proposed Free Trade Agreement in New Delhi on February 23-26, 2026. This is a significant move towards greater economic engagement between the two countries. The Terms of Reference signed in November 2025 provide a framework for the negotiations to focus on expanding trade and economic cooperation. The bilateral merchandise trade stood at Rs. 31,552 Crore (US$ 3.62 billion) in FY25, which indicates a growing level of commercial interaction and complementary strengths in various sectors. The negotiation process is likely to result in a framework that is more predictable and transparent for businesses, including micro, small, and medium-scale enterprises, and will also facilitate increased trade and investment opportunities.
During the negotiations, technical teams discussed issues such as trade in goods and services, rules of origin, intellectual property rights, sanitary and phytosanitary measures, customs procedures, and trade facilitation. Commerce Secretary Mr. Rajesh Agrawal said that the talks are in line with the visit of Prime Minister Mr. Narendra Modi to Israel, which highlights the strategic importance of the partnership. The sectors that were identified for greater cooperation include innovation, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services. Representatives of both countries emphasized that the FTA has the potential to enhance supply chains, increase cooperation, and provide new market opportunities in a forward-looking framework that considers the changing global economic landscape. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.