India’s Chief Negotiator, Additional Secretary (Commerce) Ajay Bhadoo, and Israel’s Chief Negotiator, Yifat Alon Perel, Senior Director, Trade Policy & Agreements and Deputy Trade Commissioner at Israel’s Foreign Trade Administration, had said the proposed agreement has the potential to strengthen supply chains, enhance bilateral cooperation and create new market opportunities for businesses in both countries.
The proposed FTA aims to improve market access, progressively eliminate tariff barriers and reduce non-tariff barriers through faster approvals and easier market access.
The negotiations are also expected to cover investment, customs simplification, technology transfer, defence, space, fintech, agritech, artificial intelligence, cybersecurity, research and development, innovation, and drip irrigation.The Terms of Reference (ToR) for the proposed agreement were signed in November 2025 in Tel Aviv in the presence of Commerce and Industry Minister Piyush Goyal and Israel’s Economy Minister Nir Barkat, establishing the framework for formal negotiations.
At the time, Goyal had said an FTA would benefit India’s services sector, particularly IT, tourism and business process outsourcing (BPO), while also creating opportunities for skilled Indian professionals to work in Israel.
He had also said that eight to ten Indian companies had been shortlisted for work on Tel Aviv’s ₹4.5 lakh crore metro project after pre-qualification bids were invited.
Describing the proposed agreement as a “force multiplier” for bilateral ties, Goyal had said it marked a new phase in the India-Israel partnership. He also noted that Israel had not sought export access in sensitive sectors such as dairy, agriculture and fisheries, which remain protected by India.
India and Israel recorded merchandise trade worth $3.62 billion in FY25. The proposed FTA is expected to deepen economic ties by expanding trade, investment and cooperation across a range of strategic sectors.
First Published: Jul 17, 2026 6:17 PM IS
