India, Israel to resume FTA talks in May as both sides push for deeper trade ties

India and Israel volition conscionable again successful May 2026 to proceed negotiations connected their projected escaped commercialized statement (FTA), the commerce ministry said connected Thursday. The adjacent circular of in-person discussions volition instrumentality spot successful Israel.

The announcement came aft the 2 sides wrapped up the archetypal circular of four-day talks successful New Delhi. Officials described the discussions arsenic wide-ranging, covering respective important commercialized areas.“Both sides besides agreed to proceed inter-sessional engagements virtually. The adjacent circular of in-person negotiations volition beryllium held successful May 2026 successful Israel,” the ministry said.

Wide-ranging docket connected commercialized and investment

The negotiations are covering commercialized successful goods and services, rules of origin, sanitary and phyto-sanitary measures, method barriers to trade, customs procedures, intelligence spot rights and integer trade, among different cardinal chapters, according to quality bureau PTI.In November past year, the 2 countries signed the presumption of notation (ToR) to formally motorboat the negotiations. The ToR see provisions for marketplace entree for goods done the removal of tariff and non-tariff barriers, concern facilitation, simplified customs procedures, enhanced practice successful innovation and exertion transfer, and easing of norms to boost commercialized successful services.Under an FTA, countries typically trim oregon destruct import duties connected astir traded goods and unbend regulations to promote services commercialized and investments.

India’s main negotiator is Ajay Bhadoo, further caput successful the section of commerce, portion Israel’s broadside is led by Yifat Alon Perel, elder manager for commercialized argumentation and agreements.

Push from apical leadership

The talks person gained governmental backing astatine the highest level. During his caller authorities sojourn to Israel, Prime Minister Narendra Modi addressed a peculiar plenary of the Knesset successful Jerusalem connected Wednesday and called for the aboriginal decision of an ambitious FTA to unlock untapped commercialized imaginable betwixt the 2 nations.Both countries person identified important opportunities successful sectors specified arsenic machinery, chemicals, textiles, agriculture, aesculapian devices and precocious technologies.

Trade figures amusement decline

Despite beardown diplomatic ties, caller commercialized information shows a notable dip. During 2024-25, India’s exports to Israel fell 52 per cent to $2.14 billion, down from $4.52 cardinal successful 2023-24, according to PTI.Imports besides declined by 26.2 per cent to $1.48 cardinal successful the past fiscal year.Total bilateral commercialized stood astatine $3.62 billion.India is Israel’s second-largest trading spouse successful Asia. Although merchandise commercialized is inactive dominated by diamonds, petroleum products and chemicals, caller years person seen increasing exchanges successful physics machinery, high-tech products, connection systems and aesculapian equipment.India’s cardinal exports see pearls and precious stones, automotive diesel, chemicals and mineral products, machinery and electrical equipment, plastics, textiles and apparel, basal metals, transport instrumentality and cultivation products.On the import side, India buys pearls and precious stones, chemic and mineral oregon fertiliser products, machinery and electrical equipment, petroleum oils, defence instrumentality and transport machinery.

Talks resume aft earlier pause

This is not the archetypal effort to seal a commercialized pact. India and Israel had earlier held 8 rounds of negotiations, with the past gathering taking spot successful October 2021. However, the talks stalled thereafter. The existent circular marks a renewed effort to reason the agreement.In September past year, the 2 sides besides signed a Bilateral Investment Agreement (BIA). Under this pact, India reduced the section remedies exhaustion play for Israeli investors to 3 years from 5 years. Between April 2000 and June 2025, India received $337.77 cardinal successful overseas nonstop concern from Israel.Israel, a high-income and technology-driven system with a colonisation of nether 10 million, is seen arsenic a strategical spouse for India successful innovation and precocious manufacturing. Officials connected some sides judge that a well-structured FTA could importantly fortify commercialized and concern flows successful the coming years.