India, Israel To Hold Next Round of Negotiations for FTA in May

New Delhi: After the first round of four-day talks in New Delhi, the commerce ministry on Thursday said that India and Israel would hold the next round of negotiations for the proposed free trade agreement (FTA) between the two countries in May. “Both sides also agreed to continue inter-sessional engagements virtually. The next round of in-person negotiations will be held in May 2026 in Israel,” the ministry said.

Both countries are engaged in discussions covering a wide range of areas, including trade in goods and services, rules of origin, sanitary and phyto-sanitary measures, technical barriers to trade, customs procedures, intellectual property rights, digital trade, and other key chapters.

During the ongoing two-day state visit to Israel, Prime Minister Narendra Modi, while addressing a special plenary of the Knesset in Jerusalem on February 25, called for early finalisation of an ambitious FTA to realise the untapped trade potential between the two countries.

Both sides noted the untapped potential in key sectors, including machinery, chemicals, textiles, agriculture, medical devices, and advanced technologies. In November last year, the two countries signed the terms of reference (ToR) to formally start the negotiations for the pact.

In such pacts, two sides significantly reduce or eliminate import duties on the maximum number of goods traded between them. Besides, they ease norms to promote trade in services and investments. The terms of reference (ToR) include market access for goods by eliminating tariff and non-tariff barriers, investment facilitation, simplification of customs procedures, increasing cooperation for innovation and technology transfer, and easing norms to promote trade in services.

India's chief negotiator is Ajay Bhadoo, additional secretary in the Department of Commerce, while the Israeli side is headed by Yifat Alon Perel, senior director of trade policy and agreements. India and Israel were also engaged earlier to negotiate a similar agreement. Eight rounds were held, but talks stalled later. The last round was held in October 2021. Now, both sides have again started the negotiations.

India is Israel’s second-largest trading partner in Asia. During 2024-25, India's exports to Israel dipped 52 per cent to $2.14 billion from $4.52 billion in 2023-24. Imports, too, fell 26.2 per cent to $1.48 billion last fiscal year. The bilateral trade stood at $3.62 billion.