During his ongoing two-day State visit to Israel, Prime Minister Narendra Modi, addressing a Special Plenary of the Knesset in Jerusalem on February 25, called for the early conclusion of an ambitious FTA to unlock untapped trade potential between the two countries.
On February 24, Commerce and Industry Minister Piyush Goyal met the visiting Israeli delegation and stressed the need for both sides to work closely towards a modern, comprehensive and future-ready agreement.
Over four days, negotiators discussed trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, intellectual property rights and digital trade, among other chapters. The Commerce Ministry described the talks as constructive and forward-looking, with both sides reaffirming their commitment to a balanced and mutually beneficial pact. Inter-sessional discussions will continue virtually, with the next round of in-person negotiations scheduled in Israel in May 2026.
Bilateral merchandise trade stood at about $3.62 billion in FY 2024–25. Officials have identified opportunities across machinery, chemicals, textiles, agriculture, medical devices and advanced technologies. The proposed agreement is expected to progressively lower tariff and non-tariff barriers, while expanding cooperation in areas such as investment, technology, defence, fintech, agritech and innovation.
