India and Israel Complete Second Round of Free Trade Agreement Negotiations

India and Israel have concluded the second round of negotiations for their proposed Free Trade Agreement, advancing efforts to strengthen bilateral trade, investment and economic cooperation.

The four-day round of talks was held from July 20 to 23, 2026, at Vanijya Bhawan in New Delhi. Negotiators and technical experts from both countries held detailed discussions across the major areas proposed for inclusion in the agreement.

The negotiations were conducted under the Terms of Reference signed by India and Israel in November 2025. The framework identifies the priority areas for discussion and provides a structured pathway for developing a balanced, comprehensive and mutually beneficial trade agreement.

Technical sessions during the second round covered trade in goods, trade in services, rules of origin, customs procedures, trade facilitation, intellectual property rights, sanitary and phytosanitary measures, technical barriers to trade and economic cooperation.

Both sides engaged in detailed deliberations aimed at narrowing differences, identifying areas of convergence and developing mutually acceptable provisions for the proposed agreement.

India’s Chief Negotiator and Additional Secretary in the Department of Commerce, Ajay Bhadoo, reaffirmed the country’s commitment to securing an agreement that would expand bilateral trade and reinforce the wider economic partnership between India and Israel.

Israel’s Chief Negotiator, Yifat Alon Perel, Senior Director for Trade Policy and Agreements and Deputy Trade Commissioner in Israel’s Ministry of Economy and Industry, welcomed the progress achieved since the first round. She underlined the importance of sustaining momentum towards an ambitious and mutually beneficial outcome.

Merchandise trade between India and Israel stood at USD 3.93 billion during the financial year 2025–26. The two economies possess complementary strengths across several sectors, creating opportunities for greater trade, investment, technology partnerships and industrial cooperation.

A comprehensive FTA could improve market access for exporters, reduce trade barriers, simplify customs procedures and establish clearer rules for businesses operating between the two countries. It could also support cooperation in areas such as technology, agriculture, water management, healthcare, innovation, manufacturing and professional services.

India and Israel reiterated their commitment to working towards the early conclusion of the negotiations. The proposed agreement is expected to deepen economic integration and provide a stronger institutional foundation for the expansion of bilateral commercial relations.

Source: : PIB