India and Israel will hold the next round of negotiations on their proposed Free Trade Agreement (FTA) in May, after concluding the first round of talks on Thursday.
The inaugural round of negotiations was held from February 23–26 in New Delhi. The next round will take place in Israel. Officials from both sides will continue virtual engagements between the formal rounds to maintain momentum in discussions.
“During the four-day negotiations, both 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,” a statement by the commerce ministry said. Prime Minister Narendra Modi, who is on a two-day state visit to Israel, said on Thursday that both sides would soon give final shape to the proposed FTA.
The terms of reference of the FTA was signed between the two sides on November 20, 2025. Both sides have already signed a bilateral investment treaty (BIT). Together, the FTA and BIT are expected to enhance market access, boost capital flows, and strengthen trade and investment ties.
In 2024-25 India-Israel trade stood at $ 3.62 billion with India’s exports at $ 2.14 billion and imports at $ 1.48 billion
On Tuesday Commerce and Industry Piyush Goyal, met the visiting Israeli delegation and emphasized that both sides should work closely to unlock new opportunities in trade, innovation, and growth, thereby further strengthening the valued partnership between the two countries. He encouraged both sides to strive towards a modern, comprehensive, and future-ready trade agreement.
The proposed FTA offers a valuable opportunity to enhance trade flows by providing a stable and predictable framework for businesses in both India and Israel. Both sides noted the untapped potential in key sectors, including machinery, chemicals, textiles, agriculture, medical devices, and advanced technologies, the statement added.