India and Israel have concluded the second round of negotiations for the proposed India-Israel Free Trade Agreement (FTA), marking another significant step towards strengthening economic cooperation and expanding bilateral trade relations. The four-day negotiation meeting was held from July 20 to 23, 2026, at Vanijya Bhawan in New Delhi, where officials from both countries engaged in detailed discussions on various aspects of the proposed trade pact.
The latest round of talks focused on creating a balanced, comprehensive and mutually beneficial agreement that can enhance trade flows, encourage investments and deepen economic integration between the two nations. Both sides reviewed progress made since the first round of negotiations and continued efforts to address key issues involved in the proposed FTA.
Negotiations Cover Key Trade and Economic Areas
During the discussions, technical experts from India and Israel held extensive sessions covering multiple chapters of the proposed agreement. The areas deliberated included trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, intellectual property rights, customs procedures, trade facilitation and economic cooperation.
The negotiations also covered other important provisions aimed at creating a favourable environment for businesses, improving market access and strengthening cooperation across sectors. Officials from both countries engaged in constructive discussions to reduce differences, identify common ground and build a framework that benefits industries, exporters and consumers.
The Terms of Reference (ToR) signed in November 2025 continue to serve as the guiding framework for the negotiations. The document outlines the scope and structure of discussions, focusing on enhancing bilateral trade, economic collaboration and long-term partnership between India and Israel.
Bilateral Trade Shows Strong Potential
India and Israel share a growing economic relationship supported by cooperation in areas such as technology, agriculture, innovation, defence, water management, pharmaceuticals and renewable energy. The proposed FTA is expected to provide new opportunities for businesses from both countries by improving trade access and encouraging greater investment partnerships.
According to trade data, the total merchandise trade between India and Israel reached USD 3.93 billion during the financial year 2025-26. Both economies have significant complementarities, with India offering a large consumer market and manufacturing capabilities, while Israel contributes advanced technologies, innovation-driven solutions and expertise in research and development.
The proposed agreement is expected to further strengthen these complementarities by creating a more predictable and transparent trade environment.
Both Nations Reaffirm Commitment to Early Conclusion
At the opening session of the second round of negotiations, India’s Chief Negotiator for the FTA and Additional Secretary in the Department of Commerce, Shri Ajay Bhadoo, highlighted India’s commitment to achieving a comprehensive and balanced agreement.
He emphasised that the FTA should support stronger economic relations and create mutual benefits for both countries. India has consistently focused on trade agreements that promote market opportunities while protecting domestic economic interests.
Israel’s Chief Negotiator, Ms. Yifat Alon Perel, Senior Director, Trade Policy & Agreements and Deputy Trade Commissioner at the Foreign Trade Administration, Ministry of Economy and Industry, acknowledged the progress achieved since the beginning of negotiations.
She underlined the importance of maintaining the momentum and working towards an ambitious agreement that delivers long-term benefits for both economies.
Road Ahead for India-Israel Economic Cooperation
Both countries reiterated their commitment to continue negotiations with the objective of achieving an early conclusion of the India-Israel FTA. The agreement is expected to serve as an important milestone in bilateral economic relations by boosting trade, attracting investments and promoting cooperation across emerging sectors.
With continued technical engagement and a shared commitment to strengthening economic ties, India and Israel are working towards establishing a deeper and more resilient trade partnership that aligns with the evolving needs of both economies.
Author: Shivam
Shivam Dwivedi is a senior journalist with extensive experience in research-driven journalism, policy communication, and multi-platform storytelling. His areas of interest include international relations, defence, science & technology, education, urban development, agriculture, spirituality, and environmental sustainability. His work focuses on in-depth analysis, public discourse, and impactful narratives across governance and development sectors, with a strong commitment to the Sustainable Development Goals (SDGs). Contact: [email protected]
