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India and Israel conclude first round of FTA talks, second round set for May 2026
Both nations seek to strengthen their partnership and realize untapped trade potential despite recent declines in bilateral trade figures.
India and Israel on Thursday successfully concluded the first-round of free trade negotiations in New Delhi and scheduled the second-round of in-person talks in May 2026, a commerce ministry statement said.
The development came at a time when Prime Minister Narendra Modi is on a two-day state visit to Israel. While addressing a special plenary of the Knesset in Jerusalem on February 25, Modi called for early finalisation of an ambitious free trade agreement (FTA) to realize the untapped trade potential between the two countries.
The first round of negotiations were held from February 23 to 26 after the two countries signed the terms of reference (ToR) in November 2025.
Commerce minister Piyush Goyal on February 24 met the visiting Israeli delegation and emphasized that both sides should work closely to unlock new opportunities in trade, innovation and growth to further strengthen the partnership between the two countries, the statement said.
During the 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, it said.
“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,” it said. Both sides also agreed to continue inter-sessional engagements virtually. The next round of in-person negotiations will be held in Israel, it added.
The visit of Israeli negotiating team follows signing of a bilateral investment agreement (BIA) to promote and protect foreign private investments in each other’s territories on September 8, 2025. Finance minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich signed the BIA.
India and Israel had launched FTA negotiations about 15 years ago, with the first round held in New Delhi on May 26, 2010. The talks were put on hold after the eighth round in Israel from November 24-26, 2013.
India-Israel relations received a boost after Modi’s visit to the nation from July 4 to 6, 2017 -- the first-ever by an Indian Prime Minister.
Since diplomatic relations began in 1992, bilateral trade has grown from $200 million (primarily diamonds) to a peak of $10.77 billion (excluding defence) in 2022-23, with India’s exports at $8.45 billion and imports at $2.32 billion, according to the Indian Embassy in Tel Aviv and government data.
However, due to regional security situation and trade route disruptions, trade fell to $6.53 billion (exports $4.53 billion, imports $2 billion) in 2023-24 and $3.63 billion (exports $2.15 billion, imports $1.48 billion) in 2024-25.
