India, Israel conclude first round of FTA talks in New Delhi; next round slated for May 2026 amid PM Modi’s state visit

India and Israel on Thursday concluded the first round of negotiations for a proposed free trade agreement (FTA) in New Delhi, with the second round of in-person talks scheduled for May 2026 in Israel, the commerce ministry said.

The talks come as Prime Minister Narendra Modi is on a two-day state visit to Israel. Addressing a special plenary session of the Knesset in Jerusalem on February 25, Modi called for the early conclusion of an ambitious FTA to unlock the untapped trade potential between the two nations.

The first round of negotiations, held from February 23 to 26, followed the signing of the terms of reference (ToR) in November 2025. Commerce Minister Piyush Goyal met the visiting Israeli delegation on February 24 and stressed the need to work closely to expand opportunities in trade, innovation and growth.

Negotiators discussed a wide array of areas, including trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures, intellectual property rights, digital trade and other key chapters. Both sides described the discussions as constructive and forward-looking, reaffirming their goal of reaching a comprehensive, balanced and mutually beneficial agreement. They also agreed to continue virtual inter-sessional engagements ahead of the next round.

The latest engagement follows the signing of a bilateral investment agreement (BIA) on September 8, 2025, aimed at promoting and protecting private investments in each other’s territories. Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich signed the pact.

India and Israel first launched FTA negotiations in 2010, with talks beginning in New Delhi on May 26 that year. However, discussions were paused after the eighth round held in Israel in November 2013. Bilateral ties received a major boost following Modi’s landmark visit to Israel in July 2017 — the first by an Indian prime minister.

Since establishing diplomatic relations in 1992, bilateral trade has grown from about $200 million — largely in diamonds — to a peak of $10.77 billion (excluding defence) in 2022-23. However, amid regional security challenges and trade route disruptions, total trade declined to $6.53 billion in 2023-24 and further to $3.63 billion in 2024-25, according to official data.