India-Israel Free Trade Agreement Talks Begin in New Delhi

India and Israel Launch First Round of FTA Negotiations

The inaugural round of negotiations for the India–Israel Free Trade Agreement (FTA) commenced in New Delhi on 23 February 2026 and is scheduled to conclude on 26 February. The discussions follow the signing of the Terms of Reference (ToR) in November 2025, which established the structure, objectives and negotiating framework for expanding bilateral trade and economic engagement.

Bilateral merchandise trade between the two countries reached USD 3.62 billion in FY 2024–25. Policymakers view the proposed FTA as a strategic instrument to unlock sectoral complementarities and deliver greater predictability to businesses, particularly micro, small and medium enterprises (MSMEs).

Comprehensive Scope of Negotiations

Technical delegations are conducting detailed sessions across a wide spectrum of trade disciplines. These include trade in goods and services, rules of origin, customs procedures, trade facilitation, sanitary and phytosanitary (SPS) measures, and technical barriers to trade (TBT).

Negotiations also extend to intellectual property rights (IPR) and regulatory cooperation, reflecting the intent to build a contemporary and standards-aligned trade architecture.

Strategic Context and Political Significance

The launch of talks coincides with Prime Minister Narendra Modi’s visit to Israel from 25–26 February 2026. Officials characterised the timing as favourable, citing opportunities in innovation-led sectors such as artificial intelligence, cybersecurity, high-technology manufacturing, agriculture and services.

The alignment of diplomatic and trade engagement underscores the expanding strategic depth of India–Israel relations, historically anchored in defence and technology cooperation.

Balanced and Future-Oriented Framework

India’s Chief Negotiator Ajay Bhadoo emphasised the importance of a mutually beneficial and balanced agreement. Israel’s Chief Negotiator Yifat Alon Perel highlighted the FTA’s potential to strengthen supply chains, enhance investment flows and broaden market access.

Important Facts for Exams

• India–Israel FTA negotiations began on 23 February 2026.

• Bilateral merchandise trade stood at USD 3.62 billion in FY 2024–25.

• Terms of Reference signed in November 2025.

• Key negotiation areas include goods, services, rules of origin and IPR.

The FTA is expected to accelerate trade expansion by reducing barriers, improving regulatory transparency and fostering collaboration in technology-driven sectors.