Thu Nov 20 16:01:11 UTC 2025: FOR IMMEDIATE RELEASE

India and Israel Kick Off Free Trade Agreement Talks at Tel Aviv Business Summit

Tel Aviv, November 20, 2025 – India and Israel have formally launched negotiations for a comprehensive Free Trade Agreement (FTA) aimed at significantly boosting bilateral trade and investment, as announced by Indian Commerce and Industry Minister Piyush Goyal during the India-Israel Business Summit in Tel Aviv today.

Goyal, leading a 60-member Indian business delegation, signed the Terms of Reference (ToR) with Israeli Economy and Industry Minister Nir Barkat, outlining key areas for negotiation. These include eliminating tariff and non-tariff barriers to facilitate market access for goods, streamlining customs procedures, boosting cooperation in innovation and technology transfer, and easing regulations to promote trade in services.

“We have signed the ToRs today. Now we will soon finalise the dates for starting the negotiations for that,” Goyal told reporters in Tel Aviv.

The FTA talks represent a renewed effort after eight previous rounds of discussions. Minister Goyal indicated that Israel will exclude sensitive sectors like dairy, rice, wheat, and sugar from market access.

Adding another layer of opportunity, Goyal highlighted that Indian companies are eligible to participate in Israel’s $50 billion metro project, for which pre-qualification has been announced.

Despite a 52% dip in India’s exports to Israel in 2024-25, totaling $2.14 billion, and a 26.2% fall in imports to $1.48 billion, both nations are optimistic about future growth. India is currently Israel’s second-largest trading partner in Asia. While trade has historically focused on diamonds, petroleum products, and chemicals, there’s a growing interest in electronic machinery, high-tech products, communications systems, and medical equipment.

In September 2025, the countries strengthened their ties further with a Bilateral Investment Agreement (BIA), reducing the local remedies exhaustion period for Israeli investors in India from five to three years. Between April 2000 and June 2025, India received $337.77 million in foreign direct investment from Israel.

The new FTA talks signify a strong commitment from both nations to enhance their economic partnership and drive growth in key sectors.

About The Hindu:

This news article is sourced from The Hindu’s e-paper, dated November 20, 2025, offering an Indian perspective on global affairs, including business and economic developments. The Hindu is a leading Indian newspaper providing in-depth analysis and coverage of national and international events.

Read More