Union Minister Piyush Goyal said on Thursday that Israel and India have decided to start negotiations on a Free Trade Agreement (FTA) and the two countries have formally signed the Terms of Reference (ToR).
The ToR was signed by Goyal and Israeli Minister of Economy and Industry Nir Barkat.
Goyal told reporters that they would soon define dates for the start of negotiations, adding that services such as IT, tourism and movement of skilled professionals would get a boost from the proposed pact.
He added that the proposed agreement will open the door to greater market access, capital flow, investment and trade in both goods and services.
“It will also remove barriers to doing business, ensuring clarity, predictability and stability in our economic engagement. It is clear that Israel and India are two strategic partners with deep-rooted friendship and mutual respect for each other and are destined for greater achievements and greater friendship,” said Piyush Goyal.
The minister noted that these two countries, who are not really competitors, have ambitions to finalize a free trade agreement between our two democracies.
“We have already agreed that however sensitive Israel may be, India will avoid it and likewise, whatever is sensitive for India, Israel will abide by it.”
When asked about the boost the FTA will provide to bilateral trade, Israeli Minister Nir Barkat. indicated a tenfold increase.
“India is one of the best friends Israel has around the world. Israel has the technology to increase productivity and can share it with India,” PTI quoted Barkat as saying.
He added that Israeli companies understand India’s potential and “we have to simplify the ecosystem”.
Bilateral trade between India and Israel
Between April 2000 and June 2025, India received $337.77 million in foreign direct investment (FDI) from Israel.
During 2024-25, India’s exports to Israel fell by 52 percent to $2.14 billion from $4.52 billion in 2023-24. Imports also fell 26.2 percent to $1.48 billion last fiscal year. Bilateral trade stood at USD 3.62 billion, PTI reported.
