India, Israel discuss FTA as PM Modi embarks on two-day visit to Israel

The Prime Minister is undertaking a two-day state visit to Israel from 25-26 February 2026. In his departure statement, Modi stated that both India and Israel share a strong and diverse Strategic Partnership that has experienced significant growth and vibrancy in recent years.

“I look forward to my discussions with Prime Minister Netanyahu aimed at further strengthening our cooperation across various sectors, including science and technology, innovation, agriculture, water management, defence and security, trade and investment, as well as people-to-people ties. We will also exchange views on regional and global issues of mutual interest,” he said.

Meanwhile, both countries have begun the initial phase of negotiations for a Free Trade Agreement (FTA). The Terms of Reference (ToR) were signed in November 2025 to establish a clear framework for talks focused on boosting trade and economic ties.

An FTA is expected to boost growth by providing greater certainty and predictability to businesses, including MSMEs, by leveraging complementarities across key sectors. Technical teams from both sides are conducting sessions on trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedures and trade facilitation, intellectual property rights, and related issues.

Commerce Secretary Rajesh Agrawal mentioned there is strong potential in areas such as innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services, stating that the FTA will help both nations fully capitalise on these opportunities.

Israel has stated that the close relationship between the two countries positions the FTA to strengthen supply chains, deepen cooperation, and create new market opportunities for both sides.

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