Prime Minister Narendra Modi and Israeli Prime Minister Benjamin Netanyahu. File
| Picture Credit score: V. Sudershan
India and Israel have began the primary spherical of negotiations for a free commerce settlement (FTA) right here with an purpose to additional enhance industrial ties and promote investments, an official stated.
The four-day talks will finish on February 26, the official stated.
In November final yr, the 2 nations signed the phrases of reference (ToR) to formally begin the negotiations for the pact.
In such pacts, two sides considerably cut back or get rid of import duties on most variety of items traded between them. Apart from, they ease norms to advertise commerce in companies and investments.
The ToR embrace market entry for items by eliminating tariff and non-tariff obstacles, funding facilitation, simplification of customs procedures, rising cooperation for innovation and know-how switch, and easing norms to advertise commerce in companies.
The continuing negotiations are essential as Prime Minister Narendra Modi is visiting Israel on February 25-26.
India and Israel have been engaged earlier additionally to barter an identical settlement. Eight rounds have been held, however talks stalled later. The final spherical was held in October 2021. Now each side have once more began the negotiations.
Throughout 2024-25, India’s exports to Israel dipped 52% to $2.14 billion from $4.52 billion in 2023-24. Imports, too, fell 26.2% to $1.48 billion final fiscal yr. The bilateral commerce stood at $3.62 billion.
India is Israel’s second-largest buying and selling associate in Asia.
Although bilateral merchandise commerce is dominated primarily by diamonds, petroleum merchandise, and chemical compounds, current years have witnessed a rise in commerce in areas comparable to digital equipment and high-tech merchandise, communications programs, and medical tools.
Main exports from India to Israel embrace pearls and valuable stones, automotive diesel, chemical and mineral merchandise, equipment and electrical tools, plastics, textiles, attire, base metals and transport tools, and agricultural merchandise.
Imports embrace pearls and valuable stones, chemical and mineral/fertiliser merchandise, equipment and electrical tools, petroleum oils, defence, equipment, and transport tools.
“The FTA will open the doorways for better market entry, circulation of capital, ..each in items and companies, take away obstacles in doing enterprise, present readability and predictability to our financial engagement,” Commerce and Business Minister Piyush Goyal had stated in November in Tel Aviv.
In September final yr, each nations inked a Bilateral Funding Settlement (BIA), underneath which India decreased the native treatments exhaustion interval for Israeli buyers to three years from 5 years.
Throughout April 2000 and June 2025, India acquired USD 337.77 million overseas direct funding (FDI) from Israel.
Israel is a high-income, technology-driven market of underneath 10 million folks.
Printed – February 24, 2026 07:10 pm IST