India and Israel have concluded the second round of negotiations for a proposed Free Trade Agreement (FTA), held from July 20 to 23 at Vanijya Bhawan in New Delhi. The talks mark a continuation of efforts by both sides to formalise a broader economic partnership amid evolving global trade dynamics.
Officials discussed a wide range of areas during the four-day round, including trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, intellectual property rights, and customs procedures. The discussions signal that negotiations are now moving deeper into technical aspects, with both sides working to narrow gaps across multiple chapters, a press release from the Press Information Bureau stated.
What Was Discussed
The negotiations are being conducted under the framework of the Terms of Reference signed in November 2025, which set out the structure and scope of the agreement. The FTA is expected to address tariff reductions, regulatory alignment and easier market access, along with provisions to facilitate investment and economic cooperation.
India’s chief negotiator Ajay Bhadoo and Israel’s lead negotiator Yifat Alon Perel reviewed the progress made since the first round and discussed the next phase of negotiations. While no major breakthroughs were announced, officials indicated that technical engagement is ongoing across sectors.
Present Trade Volume
Bilateral merchandise trade between India and Israel stood at $3.93 billion in fiscal year 2025–26. The two economies have complementary strengths in sectors such as technology, agriculture, defence, pharmaceuticals and water management, which are expected to be key areas of focus in the agreement.
The proposed FTA comes at a time when India is actively pursuing trade deals with multiple partners to boost exports and strengthen supply chains. For Israel, the agreement is part of efforts to expand its trade footprint in Asia and deepen economic ties with one of the world’s fastest-growing major economies.
Further rounds of negotiations are expected in the coming months, as both sides work towards resolving outstanding issues and finalising the contours of the agreement.
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