First Round of India–Israel FTA Talks Cover Wide-Ranging Issues; When Will Next Round Be Held?
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.
The talks have gained political backing at the highest level. During his state visit to Israel, Prime Minister Narendra Modi addressed a special plenary of the Knesset in Jerusalem on Wednesday and called for the early conclusion of an ambitious FTA to unlock untapped trade potential between the two nations.Both countries have identified significant opportunities in sectors such as machinery, chemicals, textiles, agriculture, medical devices and advanced technologies.
Piyush Goyal, met the visiting Israeli delegation
On 24 February 2026, Union Minister of Commerce and Industry, 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.
Both countries engaged in discussions covering a wide range of areas
During the four-day negotiations, both countries engaged in discussions covering a wide range of areas, including 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.
FTA offers a valuable opportunity to enhance trade flows
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.
This is not the first attempt to seal a trade pact. India and Israel had earlier held eight rounds of negotiations, with the last meeting taking place in October 2021. However, the talks stalled thereafter. The current round marks a renewed effort to conclude the agreement.In September last year, the two sides also signed a Bilateral Investment Agreement (BIA).