The first round of negotiations for a Free Trade Agreement between India and Israel commenced on 23 February 2026 in New Delhi and will continue until 26 February 2026.

The Terms of Reference signed in November 2025 established a structured framework for discussions on identified areas to enhance trade and economic cooperation and officials from both sides described the timing as opportune given high level engagement between the two governments.

Total merchandise trade between the two countries amounted to USD 3.62 billion in fiscal year 2024-2025 and the proposed agreement is expected to provide greater certainty and predictability for businesses, including micro, small and medium enterprises.

Negotiators noted complementarities across sectors and the potential for the agreement to act as a catalyst for deeper commercial ties and attention will focus on measures to facilitate market access and strengthen supply chains.

During the round, technical experts from India and Israel will examine trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures and technical barriers to trade and sessions will also cover customs procedure and trade facilitation, intellectual property rights and other regulatory issues that affect cross border commerce.

Senior Indian officials underlined opportunities in innovation, science and technology, artificial intelligence, cybersecurity, high tech manufacturing, agriculture and services and urged negotiators to seek a balanced outcome while both sides reiterated the aim of concluding a mutually beneficial agreement that strengthens economic partnerships and opens new markets.