The ongoing negotiations between India and Israel for a Free Trade Agreement (FTA) are likely to gain momentum during Prime Minister Narendra Modi’s two-day official visit to the country starting Wednesday.
The first formal round of negotiations is already underway in New Delhi this week, following the finalisation of the Terms of Reference (ToR) in November 2025 and preparatory talks in January, according to the Department of Commerce.
“Apart from greater market access in goods, the FTA will focus on technology transfer, innovation, agriculture and water technology, as well as the opening of the services sector. While the negotiations will take time, the two countries hope to settle on a deal within 2026,” a source tracking the matter told businessline. Total merchandise trade between the two countries stood at $3.62 billion in FY25.
In the opening session of the negotiations, Commerce Secretary Rajesh Agrawal underscored the significant opportunities available in sectors such as innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture and services. He emphasised that the FTA will enable both countries to fully leverage these emerging opportunities.
Modi’s visit
During his visit, the Indian PM will meet Israeli Prime Minister Benjamin Netanyahu. “The two leaders will review the significant progress made in the India-Israel Strategic Partnership and discuss further opportunities in various areas of cooperation, including science and technology, innovation, defence and security, agriculture, water management, trade and economy, and people-to-people exchanges. The leaders are also expected to exchange perspectives on regional and global issues of mutual interest,” according to a statement issued by the Ministry of External Affairs (MEA).
The current round of negotiations in New Delhi, which commenced on February 23, 2026, is scheduled to conclude on February 26.
“In the ongoing round, technical experts from both sides will engage in sessions covering various aspects of the FTA, such as trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, and intellectual property rights, among others,” the Commerce Department noted.
Published on February 24, 2026