NEW DELHI: India and Israel have taken another significant step toward strengthening their economic partnership after successfully concluding the second round of negotiations for the proposed India-Israel Free Trade Agreement (FTA). The discussions were held from July 20 to July 23, 2026, at Vanijya Bhawan in New Delhi, where officials from both countries engaged in detailed deliberations across multiple sectors covered under the proposed agreement.
The four-day negotiating session focused on advancing a balanced, comprehensive and mutually beneficial trade pact that is expected to boost bilateral trade, encourage investment and deepen economic cooperation between the two nations.
Wide-Ranging Discussions Across Key Trade Areas
Negotiating teams from India and Israel held technical discussions on a broad range of chapters that form the backbone of the proposed FTA. These included trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, trade facilitation, intellectual property rights, economic cooperation and several other areas.
Officials from both sides described the discussions as constructive and forward-looking. The sessions were aimed at narrowing differences, identifying common ground and building consensus on key provisions that will shape the future agreement.
The negotiations were conducted under the framework established by the Terms of Reference (ToR) signed by both countries in November 2025. The ToR continues to guide discussions and provides a structured roadmap for addressing various trade and economic issues as negotiations progress.
Bilateral Trade Offers Strong Foundation
Trade relations between India and Israel have remained steady, providing a solid foundation for the proposed agreement. According to official figures, total merchandise trade between the two countries reached USD 3.93 billion during FY 2025-26.
Both nations possess complementary strengths across several sectors, creating opportunities for expanding commerce and investment. Policymakers believe that the proposed FTA can unlock new business opportunities, improve market access, strengthen supply chains and create a more predictable trade environment for exporters and investors from both countries.
The agreement is also expected to encourage greater participation of businesses in emerging sectors while improving cooperation in traditional areas of trade.
India Reiterates Commitment to Balanced Agreement
During the opening session of the negotiations, India’s Chief Negotiator, Additional Secretary in the Department of Commerce Shri Ajay Bhadoo, reaffirmed India’s commitment to achieving a balanced and comprehensive agreement that benefits both countries.
He highlighted India’s intention to negotiate a trade pact that not only expands bilateral trade but also strengthens long-term economic relations. According to the Indian delegation, the objective remains to create an agreement that supports sustainable growth, investment and greater economic integration.
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India also emphasised the importance of maintaining a collaborative approach while addressing technical issues during the negotiations.
Israel Appreciates Progress in Negotiations
Israel’s Chief Negotiator, Ms. Yifat Alon Perel, Senior Director for Trade Policy and Agreements and Deputy Trade Commissioner in the Foreign Trade Administration under the Ministry of Economy and Industry, welcomed the progress achieved since the first round of negotiations.
She underlined the importance of maintaining the current momentum and expressed confidence that both sides could work toward an ambitious and mutually beneficial outcome. Israeli officials acknowledged the constructive engagement shown during the technical discussions and reaffirmed their commitment to continued cooperation.
Both delegations agreed that sustained dialogue would be essential for resolving outstanding issues and moving closer to the finalisation of the agreement.
Focus on Strengthening Economic Partnership
The proposed India-Israel Free Trade Agreement is expected to play a key role in expanding economic engagement between the two countries. Beyond increasing merchandise trade, the pact aims to strengthen investment flows, facilitate smoother customs procedures, improve regulatory cooperation and create new opportunities for businesses operating in both markets.
Officials from both governments reiterated their shared commitment to concluding the negotiations at the earliest possible stage while ensuring that the agreement remains balanced, comprehensive and beneficial for both economies.
With the successful completion of the second round of negotiations, India and Israel have continued to build momentum toward a landmark trade agreement that could significantly enhance bilateral economic ties and open new avenues for cooperation in the years ahead.
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