India and Israel have formally launched the first round of negotiations for a bilateral Free Trade Agreement (FTA), marking a major step toward expanding trade and economic cooperation between the two countries.
The negotiations began on Monday, 23 February, in New Delhi and will continue until 26 February, following the signing of the Terms of Reference in November 2025 that established the framework for discussions on identified trade areas.
The proposed agreement is expected to deepen trade ties between the two economies, which recorded total merchandise trade of $3.62 billion in the financial year 2024-25.
“During this round, technical experts from both sides will engage in sessions covering various aspects of FTA such as trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedure and trade facilitation, intellectual property rights, among others,” the Commerce Ministry said in a statement on Tuesday, 24 February.
During the opening session, Commerce Secretary Rajesh Agrawal underscored that the FTA negotiations had begun at an opportune moment of Prime Minister Narendra Modi’s visit to Israel from 25-26th February.
Agrawal highlighted opportunities for deeper cooperation in sectors such as innovation, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services.
India’s Chief Negotiator Ajay Bhadoo emphasised the importance of reaching a balanced agreement that supports long-term partnership, while Israel’s Chief Negotiator Yifat Alon Perel noted that the FTA could strengthen supply chains and open new market opportunities for businesses in both countries.
“This engagement highlights the strategic importance of India-Israel bilateral relationship, and reinforces India’s commitment to strengthen economic partnerships in line with national priorities and global aspirations. Both sides are working towards concluding a balanced and mutually beneficial agreement,” the ministry said.
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