India and Israel have officially launched the first round of negotiations for a proposed Free Trade Agreement (FTA) in New Delhi, marking a key milestone in bilateral economic cooperation ahead of Prime Minister Narendra Modi’s state visit to Israel on February 25-26, 2026. The talks, which began on February 23 and are scheduled through February 26, follow the signing of the Terms of Reference in November 2025, establishing a framework for structured negotiations focused on trade in goods and services, rules of origin, sanitary and phytosanitary measures, intellectual property rights, customs procedures, and trade facilitation.
Officials from both sides highlighted the potential of the FTA to provide greater predictability and opportunities for businesses, including micro, small and medium enterprises (MSMEs), while boosting trade volumes beyond the current bilateral merchandise trade of around USD 3.62 billion. Beyond commerce, the discussions underscore broader cooperation in sectors such as innovation, high-tech manufacturing, agriculture, and services, reflecting the deepening strategic partnership between the two countries. Modi’s visit is expected to further consolidate ties, with additional talks planned on defense, technology, and people-to-people exchanges.
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