New Delhi, Feb 24 (IANS) The first round of negotiations for the proposed India-Israel Free Trade Agreement (FTA) began in New Delhi and will continue until February 26, coinciding with Prime Minister Narendra Modi’s visit to Israel on February 25-26, the Ministry of Commerce and Industry said on Tuesday.

The ministry said the timing of the talks provides fresh momentum to deepen economic ties between the two countries.

The Terms of Reference (ToR) for the agreement were signed in November 2025, creating a structured framework for discussions aimed at expanding trade and economic cooperation.

The FTA is expected to provide greater certainty and predictability to businesses, including micro, small and medium enterprises (MSMEs), and help unlock new opportunities across sectors.

Total merchandise trade between India and Israel stood at $3.62 billion in FY 2024-25. Both countries have complementary strengths in areas such as innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture and services.

The ministry believes the agreement could significantly boost bilateral trade by leveraging these synergies.

During the opening session, Commerce Secretary Rajesh Agrawal said the negotiations had started at an opportune time, aligning with the Prime Minister’s visit to Israel.

He highlighted the strong potential for collaboration in advanced technology sectors and said the FTA would help both sides fully utilise emerging opportunities.

Technical experts from both countries are participating in detailed discussions during this round.

The talks cover a wide range of issues, 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.

India’s Chief Negotiator Ajay Bhadoo, Additional Secretary in the Department of Commerce, stressed the importance of building a balanced and forward-looking agreement that reflects the evolving partnership between the two nations.

Israel’s Chief Negotiator Yifat Alon Perel, Senior Director for Trade Policy and Agreements and Deputy Trade Commissioner at Israel’s Ministry of Economy and Industry, said the FTA has the potential to strengthen supply chains, enhance cooperation and open new markets for both countries.

–IANS

pk/uk