India, Israel to resume FTA talks in May as both sides push for deeper trade ties
Times of India
by TOI BUSINESS DESKFebruary 26, 2026
AI-Generated Deep Dive Summary
India and Israel have agreed to resume free trade agreement (FTA) negotiations, with the next round of talks set to take place in May 2026 in Israel. This decision follows a successful four-day meeting in New Delhi, where both sides discussed key areas such as trade in goods and services, investment facilitation, customs procedures, and digital trade. The renewed focus on FTA negotiations reflects the strong political commitment from both nations to deepen their economic partnership.
The agenda for the talks includes provisions for reducing tariff and non-tariff barriers, simplifying customs processes, and enhancing cooperation in innovation and technology transfer. These measures aim to boost bilateral trade, which has seen a notable decline in recent years. For instance, India’s exports to Israel fell by 52% between 2023-24 and 2024-25, dropping to $2.14 billion. Imports also declined by 26.2%, totaling $1.48 billion in the last fiscal year. Despite this dip, both countries recognize the potential for growth, particularly in sectors like machinery, chemicals, textiles, agriculture, and advanced technologies.
The renewed efforts on the FTA come after a pause following eight rounds of negotiations that concluded in October 2021. The current round marks a significant push to finalize the agreement, with Prime Minister Narendra Modi emphasizing the importance of an ambitious FTA during his recent state visit to Israel. Modi also highlighted the use of UPI in Israel as part of India’s efforts to enhance financial ties.
Both countries have identified several opportunities for collaboration, including trade in diamonds, chemicals, and medical devices. While merchandise trade is currently dominated by diamonds, petroleum products, and chemicals, there has been a growing exchange in high-tech products like electronic machinery and medical equipment. This reflects the evolving nature of India-Israel economic relations, which extend beyond traditional commodities.
The FTA negotiations are not just about boosting trade but also about fostering innovation and investment. By addressing issues such as intellectual property rights, digital trade barriers, and technical standards, both nations aim to create a more seamless business environment. The agreement is expected to open new avenues for Indian and Israeli companies, particularly in sectors like technology, agriculture, and advanced manufacturing.
In summary, the resumption of FTA talks between India and Israel signals a renewed commitment to strengthening their economic partnership. While challenges remain, including declining trade figures and the need for comprehensive reforms, both countries see significant potential in expanding bilateral ties. The successful conclusion of these negotiations could unlock new opportunities for growth and collaboration, benefiting industries across both nations and solidifying their strategic relationship.
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Originally published on Times of India on 2/26/2026