India and Israel successfully concluded the second round of negotiations for the proposed India-Israel Free Trade Agreement (FTA) from July 20th-23rd, 2026 at Vanijya Bhawan, New Delhi. During the 4 day negotiations, both the sides held detailed discussions on all the areas of the proposed agreement and continued to make progress toward reaching a balanced, comprehensive and mutually beneficial FTA.
The Terms of reference( ToR) signed in Nov 2025, continue to serve as structured framework for the negotiations on the identified areas to enhance bilateral trade, economic co-operation and overall economic partnership between two countries.
Total merchandise trade between two countries during FY 2025-26 was USD 3.93 billion. Both countries share complementaries in several sectors and the proposed FTA offers opportunity for boosting bilateral trade, investment and economic co-operation.
During the round, technical experts from both sides met specifically on trade in goods, trade in services, rules of origin, sanitary & phytosanitary measures, technical barrier to trade, intellectual property rights, customs procedures and trade facilitation, economic cooperation and other chapters of proposed FT A. Discussions were forward looking and concrete. Both sides made in-depth technical consultations with the view to narrow down divergences, identify convergences and address various concerns of both sides.
During the opening session, India’s Chief Negotiator for the FTA, Additional Secretary, Department of Commerce, Mr Ajay Bhadoo restated India’s intent to reach a balance, comprehensive and mutually beneficial agreement that will further bolster bilateral trade and economic cooperation between the two countries. Israel’s Chief Negotiator, Ms Yifat Alon Perel, Senior Director, Trade policy & Agreements and Deputy Trade Commissioner, Foreign Trade Administration, Ministry of Economy & Industry complimented on the progress of the first round negotiations and stressed the need to maintain the tempo towards an ambitious and mutually benefitial outcome.
Both the sides agreed to endeavor to conclude a balance, comprehensive and mutually beneficial FTA between India and Israel in the early period.