**Executive Summary**
The first round of negotiations for the India-Israel Free Trade Agreement (FTA) concluded successfully in New Delhi from February 23 to 26, 2026. Discussions covered a wide range of areas to enhance trade and economic cooperation, building on the Terms of Reference signed in November 2025. The next round of in-person negotiations will be held in Israel in May 2026.
**Key Points / Main Content**
* **FTA Negotiations:**
* The first round of India-Israel FTA negotiations concluded successfully in New Delhi (Feb 23-26, 2026).
* Terms of Reference (ToR) signed in November 2025 established a structured framework for discussions.
* Objective is to enhance trade and economic cooperation between the two countries.
* **High-Level Support:**
* Prime Minister Modi called for early finalization of an ambitious Free Trade Agreement during his State Visit to Israel on February 25, 2026.
* Union Minister Piyush Goyal met with the Israeli delegation, emphasizing the need to unlock new opportunities in trade, innovation, and growth.
* **Areas of Discussion:**
* Negotiations covered trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, intellectual property rights, digital trade, and other key chapters.
* Both sides agreed to continue inter-sessional engagements virtually.
* **Economic Impact:**
* Bilateral merchandise trade between the two countries stood at approximately USD 3.62 billion in FY 2024-25.
* The FTA offers a valuable opportunity to enhance trade flows by providing a stable and predictable framework for businesses.
* Untapped potential exists in sectors like machinery, chemicals, textiles, agriculture, medical devices, and advanced technologies.
* **Future Steps:**
* The next round of in-person negotiations will be held in Israel in May 2026.
**Impact Analysis**
**Businesses in India and Israel**
* **Impact:** The FTA offers the potential to enhance trade flows and provide a more stable and predictable environment for business. Untapped potential in key sectors.
* **Action Required:** Businesses should monitor the progress of the FTA negotiations and explore opportunities for expanding trade and investment between the two countries.
**Stakeholders in both Countries**
* **Impact:** Expected to benefit from new opportunities in trade, innovation, and economic partnership.
* **Action Required:** Be attentive to the evolving trade landscape and ready to adapt to new opportunities stemming from the FTA.
Key Entities Referenced
India-Israel Free Trade Agreement (FTA): A proposed agreement between India and Israel aiming to enhance trade and economic cooperation, providing a stable framework for businesses.
Ministry of Commerce & Industry: The Indian ministry responsible for overseeing the negotiations and implementation of the FTA with Israel.
New Delhi: The location of the first round of negotiations for the India-Israel Free Trade Agreement.
Israel: Country involved in the Free Trade Agreement negotiations with India, also the location of the next round of negotiations.
Ministry of Commerce & Industry
First Round of India–Israel FTA Talks Conclude
Successfully in New Delhi
FTA Talks Cover Wide-Ranging Issues; Next Round to Be
Held in Israel in May 2026
Posted On: 26 FEB 2026 6:56PM by PIB Delhi
The first round of negotiations for the India–Israel Free Trade Agreement (FTA), held from 23 to 26
February 2026 in New Delhi, concluded successfully today. The Terms of Reference (ToR) was signed in
November 2025, establishing a structured framework for discussions on identified areas to enhance trade
and economic cooperation.
Presently on a two-day State Visit to Israel, Prime Minister Shri Narendra Modi while addressing a
Special Plenary of the Knesset in Jerusalem on February 25, 2026, called for early finalization of an
ambitious Free Trade Agreement to realize the untapped trade potential between the two countries.
On 24th February 2026, Union Minister of Commerce and Industry, Shri Piyush Goyal, met the visiting
Israeli delegation and emphasized that both sides should work closely to unlock new opportunities in
trade, innovation, and growth, thereby further strengthening the valued partnership between the two
countries. He encouraged both sides to strive towards a modern, comprehensive, and future-ready trade
agreement.
During the four-day negotiations, both countries engaged in discussions covering 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, digital trade, and other key chapters.
Discussions were held in a constructive and forward-looking manner, with both sides reaffirming their
objective of negotiating a comprehensive, balanced, and mutually beneficial agreement. Both sides also
agreed to continue inter-sessional engagements virtually. The next round of in-person negotiations will be
held in May 2026 in Israel.
Bilateral merchandise trade between the two countries stood at approximately USD 3.62 billion in FY
2024–25. The proposed FTA offers a valuable opportunity to enhance trade flows by providing a stable
and predictable framework for businesses in both India and Israel. Both sides noted the untapped potential
in key sectors, including machinery, chemicals, textiles, agriculture, medical devices, and advanced
technologies. The successful conclusion of the first round reflects a shared commitment to deepen
economic partnership and creating new opportunities for stakeholders.
***
Abhishek Dayal/ Abhijith Narayanan/ Ishita Biswas
(Release ID: 2233199) Visitor Counter : 432
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