India and Israel Set to Resume Free Trade Talks in May

By Admin

27 Feb, 2026

India and Israel are set to resume negotiations for a proposed Free Trade Agreement (FTA) in May, signalling renewed momentum in efforts to deepen bilateral economic ties between India and Israel.

After a gap in discussions, officials from both sides are expected to reconvene and accelerate talks aimed at expanding trade cooperation and strengthening long-term strategic partnerships.

Renewed Push for Comprehensive Trade Pact

The proposed FTA is designed to enhance trade in goods and services while reducing tariff and non-tariff barriers. Negotiators are expected to focus on:

• Tariff reductions across key sectors
  
  

• Improved market access
  
  

• Investment facilitation measures
  
  

• Cooperation in high-technology industries
  
  

The agreement is also expected to strengthen collaboration in innovation, agriculture, pharmaceuticals, and defence-related manufacturing. Both governments see the FTA as a platform to unlock new economic opportunities and drive sustainable growth.

Growing Bilateral Trade Relations

Bilateral trade between India and Israel has shown steady growth over the years. Key sectors contributing to trade include:

• Diamonds
  
  

• Chemicals
  
  

• Electronics
  
  

• Machinery
  
  

• Agricultural technology
  
  

Policymakers believe that a comprehensive trade agreement could significantly boost trade volumes by easing regulatory hurdles and improving supply chain integration. Enhanced cooperation could also help diversify trade portfolios and reduce dependency on limited markets.

Boost for Innovation and High-Tech Cooperation

Israel’s reputation as a technology-driven economy presents significant opportunities for Indian businesses. Indian companies are keen to enhance access to Israel’s advanced technology ecosystem, particularly in:

• Agri-tech
  
  

• Cybersecurity
  
  

• Pharmaceuticals
  
  

• Research and development
  
  

At the same time, Israeli firms are looking to tap into India’s vast consumer base and expanding manufacturing ecosystem, benefiting from India’s scale, cost advantages, and growing infrastructure.

Industry and Investor Confidence

Industry stakeholders from both countries have welcomed the move to resume FTA negotiations. Business leaders believe that a formal agreement would:

• Provide greater certainty for exporters
  
  

• Improve investor confidence
  
  

• Create predictable regulatory frameworks
  
  

• Encourage long-term strategic partnerships
  
  

For exporters and investors, clarity on tariffs and regulations can significantly reduce risk and improve planning for cross-border operations.

Road Ahead: Key Issues and Timelines

The upcoming round of talks in May is expected to focus on resolving outstanding issues and establishing timelines for future negotiations. Both governments have expressed commitment to concluding a mutually beneficial agreement that supports economic growth, job creation, and technological advancement.

If successfully concluded, the India–Israel Free Trade Agreement could mark a major milestone in bilateral relations, further strengthening economic integration and opening new avenues for trade, innovation, and investment.