New Delhi, Tel Aviv begin FTA talks in Delhi amid PM Modi’s two-day Israel visit

India and Israel on Tuesday started the first round of negotiations for a proposed Free Trade Agreement (FTA), in a move seen as a major step towards deepening the economic partnership during Prime Minister Narendra Modi’s visit to the West Asian nation. 

Union Commerce and Industry Minister Piyush Goyal met an Israeli delegation in New Delhi on Tuesday to kick-start the negotiations and described the discussions as an important milestone in strengthening bilateral economic ties. In a post on X, Goyal said the talks were focused on unlocking new opportunities for businesses and people in both countries. 

"The FTA negotiations mark an important step towards enhancing India-Israel bilateral trade and economic cooperation, aimed at creating greater opportunities for businesses and people on both sides," he said. 

Trade and technical experts from the two sides are holding detailed sessions covering a wide range of areas, including trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures and trade facilitation, and intellectual property rights, according to sources familiar with the discussions. 

On the Israeli side, Nir Barkat, Minister of Economy and Industry, welcomed the start of negotiations, saying that "we are on the way to a breakthrough that creates great new opportunities between our countries and will serve as a powerful growth engine for the economies of Israel and India." 

PM Modi in Israel 

Prime Minister Narendra Modi is set to arrive in Israel later Wednesday for a two-day visit, during which he will hold bilateral talks with his Israeli counterpart Benjamin Netanyahu. Discussions are expected to span defence and security cooperation, trade and investment, agriculture, and collaboration in science and technology. 

Hexagon of alliances 

In another development ahead of the visit, Netanyahu unveiled what he described as a “hexagon of alliances” and identified India as a core partner in the initiative, alongside Israel, Greece and Cyprus. The proposed grouping, according to Netanyahu, is aimed at countering what he termed “radical axes” in the Middle East (West Asia). 

Strategic partnership since 2017 

India and Israel elevated their ties to a strategic partnership during Prime Minister Modi’s visit to Israel in July 2017. Since then, cooperation has expanded across key sectors such as science and technology, innovation, defence and security, trade and investment, agriculture, water management, and people-to-people exchanges. 

In recent years, the relationship has gathered pace, particularly in defence, scientific research, cybersecurity and innovation. Defence cooperation has become a central pillar of the partnership, with Israel supplying a range of military platforms and weapon systems to India. 

Goyal’s Israel visit in November 

Economic engagement has also broadened steadily. During Commerce Minister Goyal’s visit to Israel in November last year, the two sides signed the terms of reference to formally launch negotiations for the proposed FTA. Earlier, in September, India and Israel signed a Bilateral Investment Agreement aimed at boosting economic cooperation and enhancing trade and investment flows between the two countries. 

The launch of formal FTA negotiations now signals a structured push to further institutionalise economic ties, with both governments looking to leverage complementary strengths in technology, manufacturing, agriculture and services.