**Executive Summary**
The first round of negotiations for the India-Israel Free Trade Agreement (FTA) commenced on 23 February 2026 in New Delhi and is scheduled to continue until 26 February 2026. The Terms of Reference (ToR) for the FTA were signed in November 2025, establishing a framework for trade and economic cooperation discussions. The FTA aims to enhance bilateral trade, with both sides working towards a balanced and mutually beneficial agreement.
**Key Points / Main Content**
* **FTA Negotiations:**
* The first round of negotiations took place from February 23-26, 2026, in New Delhi.
* The ToR, signed in November 2025, provides a structured framework for discussions.
* **Trade Statistics and Objectives:**
* Total merchandise trade between India and Israel stood at USD 3.62 billion in FY 2024-2025.
* The FTA aims to enhance bilateral trade by providing certainty and predictability to businesses, including MSMEs.
* **Discussion Topics:**
* Technical experts from both sides will engage in sessions covering various aspects of the FTA.
* Topics include trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedure and trade facilitation, and intellectual property rights.
* **Areas of Opportunity:**
* Opportunities exist in innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services.
* The FTA is intended to enable both countries to harness and fully leverage these opportunities.
* **Strategic Importance:**
* Engagement highlights the strategic importance of the India-Israel bilateral relationship.
* The aim is to strengthen economic partnerships in line with national priorities and global aspirations.
* Both sides are working towards concluding a balanced and mutually beneficial agreement.
**Impact Analysis**
**Businesses (Including MSMEs)**
* **Impact:** Increased certainty and predictability in trade, potentially leading to increased business opportunities.
* **Action Required:** Stay informed about the progress and details of the FTA, and assess potential implications for their businesses.
**India and Israel Governments/Trade Ministries**
* **Impact:** Will be responsible for negotiation and eventual implementation of the FTA, as well as seeing an increase in trade.
* **Action Required:** Continue negotiations to finalize a balanced and mutually beneficial agreement, and prepare for implementation.
Key Entities Referenced
India-Israel Free Trade Agreement (FTA): Proposed agreement to enhance trade and economic cooperation between India and Israel.
Ministry of Commerce & Industry: Indian ministry overseeing the negotiations for the India-Israel FTA.
Israel Ministry of Economy and Industry: Israeli ministry involved in the negotiations for the India-Israel FTA.
New Delhi: Location of the first round of negotiations for the India-Israel FTA.
Ministry of Commerce & Industry
India and Israel launch first round of Negotiations
for Free Trade Agreement
Posted On: 24 FEB 2026 7:18PM by PIB Delhi
The first round of negotiations for the India-Israel Free Trade Agreement (FTA) commenced on 23
February 2026 in New Delhi, and is scheduled to take place until 26 February 2026. 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.
Total merchandise trade between the two countries stood at USD 3.62 billion in FY 2024-2025. India and
Israel share complementarities across several sectors, and the FTA will be a catalyst to further enhance the
bilateral trade by providing certainty and predictability to businesses, including MSMEs.
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.
During the opening session, Commerce Secretary, Shri Rajesh Agrawal, underscored that the FTA
negotiations had begun at an opportune moment of Hon’ble Prime Minister Shri Narendra Modi's visit to
Israel from 25-26th February, 2026. Shri Agrawal underscored the significant opportunities available to
both sides in sectors such as innovation, science and technology, artificial intelligence, cybersecurity,
high-tech manufacturing, agriculture, and services. He emphasized that the FTA will enable both countries
to harness and fully leverage these opportunities.
Chief Negotiator of India, Shri Ajay Bhadoo, Additional Secretary, Department of Commerce, reiterated
the significance of this engagement for the two countries and encouraged both sides to work on a balanced
agreement to build a forward looking framework for an evolving partnership. Chief Negotiator of Israel
for the FTA, Ms. Yifat Alon Perel, Senior Director Trade Policy & Agreements and Deputy Trade
Commissioner, Foreign Trade Administration, Ministry of Economy and Industry, Israel, expressed that
the two countries shared a close relationship, and that the FTA has the potential to strengthen supply
chains, enhance cooperation and open new markets for 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.
***
Abhijiith Narayanan/Shabbir Azad/Anushka Pandey
(Release ID: 2232335) Visitor Counter : 351
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