A statement by the Indian Ministry of Commerce said that India and Israel on Thursday successfully concluded the first round of free trade negotiations in New Delhi and set the date for the second round of in-person talks in May 2026.
This development came at a time when Prime Minister Narendra Modi is on a two-day state visit to Israel. Addressing the special plenary session of the Knesset in Jerusalem on February 25, Modi called for early finalization of the ambitious free trade agreement to realize the untapped trade potential between the two countries.
The first round of negotiations was held from February 23 to 26 after the two countries signed the terms of reference in November 2025.
On February 24, Commerce Minister Piyush Goyal met with the visiting Israeli delegation and stressed that the two sides should work closely to open new opportunities in trade, innovation and growth to further strengthen the partnership between the two countries, the statement said.
During the negotiations, the two countries engaged in discussions covering a wide range of areas, including trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, intellectual property rights, digital trade, and other key chapters.
The statement added, “The discussions took place in a constructive and forward-looking manner, with both sides affirming their goal of negotiating a comprehensive, balanced and mutually beneficial agreement.” The two sides also agreed to continue engagements between sessions virtually. She added that the next round of personal negotiations will be held in Israel.
The Israeli negotiating team’s visit comes on the heels of the signing of a Bilateral Investment Agreement (BIA) to promote and protect foreign private investments in their respective territories on September 8, 2025. Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich signed the BIA.
India and Israel had launched FTA negotiations about 15 years ago, with the first round held in New Delhi on May 26, 2010. But the talks were suspended after the eighth round in Israel from November 24 to 26, 2013.
India-Israel relations received a boost after Modi’s visit to the country from July 4 to 6, 2017 – the first ever by an Indian Prime Minister.
Since the start of diplomatic relations in 1992, bilateral trade has grown from $200 million (primarily diamonds) to a peak of $10.77 billion (excluding defence) in 2022-23, with India’s exports at $8.45 billion and its imports at $2.32 billion, according to the Indian Embassy in Tel Aviv and government data.
However, due to the regional security situation and trade route disruptions, trade declined to $6.53 billion (exports $4.53 billion, imports $2 billion) in 2023-2024 and $3.63 billion (exports $2.15 billion, imports $1.48 billion) in 2024-2025.
