India–Israel FTA Talks Begin in New Delhi

The first round of negotiations for the India–Israel Free Trade Agreement (FTA) commenced in New Delhi on 23 February 2026 and will continue until 26 February. The discussions follow the signing of the Terms of Reference (ToR) in November 2025, which laid down a structured framework to deepen trade and economic cooperation between the two countries.

Bilateral merchandise trade between India and Israel stood at USD 3.62 billion in FY 2024–25. Both sides view the proposed FTA as a means to unlock complementarities across sectors and provide greater certainty and predictability to businesses, including micro, small and medium enterprises (MSMEs).

Scope of Negotiations

Technical experts from both countries are holding detailed sessions covering trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures and trade facilitation. Discussions are also addressing intellectual property rights and regulatory cooperation.

The comprehensive scope signals an ambition to create a modern and forward-looking trade framework aligned with global standards.

Strategic Timing and Political Significance

The opening session coincided with Prime Minister Narendra Modi’s visit to Israel from 25–26 February 2026. Commerce Secretary Rajesh Agrawal described the timing as opportune, emphasising opportunities in innovation, science and technology, artificial intelligence, cybersecurity, high-technology manufacturing, agriculture and services.

The engagement underlines the strategic importance of India–Israel ties, extending beyond defence and technology into broader economic integration.

Balanced and Forward-Looking Framework

India’s Chief Negotiator Ajay Bhadoo stressed the need for a balanced agreement that supports an evolving partnership. Israel’s Chief Negotiator, Yifat Alon Perel, highlighted the potential of the FTA to strengthen supply chains, enhance cooperation and open new markets for both sides.

Important Facts for Exams

• India–Israel FTA negotiations began on 23 February 2026 in New Delhi.
• Total bilateral merchandise trade stood at USD 3.62 billion in FY 2024–25.
• Terms of Reference for the FTA were signed in November 2025.
• Key negotiation areas include goods, services, rules of origin and IPR.

Implications for Bilateral Trade and Supply Chains

The proposed FTA is expected to catalyse trade expansion by reducing barriers and enhancing regulatory transparency. By strengthening supply chains and promoting innovation-driven sectors, the agreement aims to deepen economic cooperation and align with India’s broader strategy of diversifying trade partnerships while advancing national development priorities.