India and Israel successfully concluded the first round of free trade agreement (FTA) negotiations in New Delhi, with the second round set for May 2026 in Israel. Both countries aim to negotiate a comprehensive, balanced, and mutually beneficial trade deal covering goods, services, digital trade, and investment protections.

First Round of Negotiations

Dates: February 23–26, 2026
Location: New Delhi, India
Discussions covered:
- Trade in goods and services
- Rules of origin
- Sanitary and phytosanitary measures
- Technical barriers to trade
- Customs procedures
- Intellectual property rights
- Digital trade
Inter-sessional engagements agreed to continue virtually before the next round.

High-Level Leadership Engagement

Narendra Modi called for early FTA finalization during his February 25 address at a Knesset plenary session in Jerusalem.
Piyush Goyal met the visiting Israeli delegation on February 24, emphasizing strengthening trade, innovation, and growth.
Previous bilateral agreements include the Bilateral Investment Agreement (BIA) signed on September 8, 2025, by Nirmala Sitharaman and Bezalel Smotrich.

Historical Context

FTA negotiations initially launched: 2010
Last round before pause: 8th round in Israel, November 2013
Modi’s 2017 visit marked the first-ever Indian Prime Ministerial visit to Israel.
Bilateral trade trajectory:
- 1992: $200 million (mainly diamonds)
- 2022–23 peak: $10.77 billion (India exports $8.45B, imports $2.32B)
- 2023–24: $6.53 billion
- 2024–25: $3.63 billion

Trade fell recently due to regional security concerns and disrupted trade routes.

Strategic Outlook

The FTA is expected to unlock new opportunities in:

Goods and services trade
Investment and intellectual property
Digital commerce and innovation
Customs facilitation and regulatory harmonization

Both nations reaffirmed commitment to a forward-looking, constructive, and mutually beneficial agreement.

Key Entities

India — Party to FTA Negotiations
Israel — Party to FTA Negotiations
Narendra Modi — Indian PM & FTA Advocate
Piyush Goyal — Indian Commerce Minister
Nirmala Sitharaman — Indian Finance Minister
Bezalel Smotrich — Israeli Finance Minister

Final Verdict

The conclusion of the first round signals renewed momentum in India–Israel economic relations after a decade-long hiatus in talks. If successful, the FTA could significantly boost bilateral trade, reduce barriers, and strengthen strategic economic ties, especially amid fluctuating regional trade flows and security uncertainties.