India, Israel successfully conclude negotiations for FTA in Delhi as PM Modi visits Israel

India and Israel ‘’successfully concluded’’ the First Round of negotiations for the Free Trade Agreement (FTA) here on Thursday, even as Prime Minister Narendra Modi, currently on a two-day visit to Israel, said the two countries are set to finalise a mutually-beneficial FTA

Talks between the two countries on FTA were held here from February 23 to 26, an official spokesman said here.

The Terms of Reference (TOR) were 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 Modi, while addressing a Special Plenary of the Knesset in Jerusalem on February 25, called for early finalisation of an ambitious Free Trade Agreement to realise the untapped trade potential between the two countries.

On February 24, Minister for Commerce and Industry, Piyush Goyal, met the visiting Israeli delegation and emphasised 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 create new opportunities for stakeholders.

In the past year (February 2025 – February 2026), India has significantly accelerated its trade diplomacy, signing or finalising FTAs with more than 30 countries.

The most notable agreements concluded or signed during this period include the European union (27 countries). Described as the “mother of all deals,” this FTA was signed on January 27, providing duty-free access for over 99 per cent of Indian exports.

The India–Oman Comprehensive Economic Partnership Agreement (CEPA) was signed in December 2025, granting duty-free access to 99.38 per cent of India’s exports.

The India–UK Comprehensive Economic and Trade Agreement (CETA) was signed in July 2025, focusing on services, professional mobility, and tariff reductions.

Negotiations for a full trade agreement with New Zealand were concluded in December 2025, with implementation expected in 2026.

As of February 2026, India has concluded a total of nine comprehensive FTAs covering 38 countries in the last 3.5 years, with the majority of the most significant deals (EU, UK, and Oman) occurring within the past 12 months.