India–Israel FTA talks resume with signed negotiation terms

Tel Aviv: A proposed free trade agreement (FTA) between Israel and India will open up significant business opportunities for industries in both countries and boost bilateral trade and investment flows, Israeli Economy and Industry Minister Nir Barkat said.

He said that the two countries have signed terms of references (ToRs) on November 20 here to start negotiations for the agreement. Barkat said that both counties have decided not to include sensitive areas in the FTA negotiations. "Huge opportunities are there to boost trade and investments between the two countries. We are going to see huge growth in business," Barkat told media. He added that a lot of Israeli companies are interested in opening up subsidiaries in India, which can act as a gateway to Asia for them.

"People are now understanding that there are big opportunities (in India) because India's tomorrow is not the India of yesterday," he said, adding India is well positioned to compete with China. The elements include market access for goods by eliminating tariff and non-tariff barriers, investment facilitation, simplification of customs procedures, increasing cooperation for innovation and technology transfer, and easing norms to promote trade in services. India and Israel had been negotiating a similar agreement since May 2010. Eight rounds were held, but talks stalled later. The last round was held in October 2021. During 2024-25, India's exports to Israel dropped 52 per cent to $2.14 billion from $4.52 billion in 2023-24. Imports, too, fell 26.2 per cent to $1.48 billion last fiscal year.

The bilateral trade stood at $3.62 billion. India is Israel's second-largest trading partner in Asia.