Commerce and Industry Minister Piyush Goyal will review the status of the proposed India-Israel free trade agreement (FTA) during his three-day visit to Tel Aviv this week, the commerce ministry announced on Wednesday. He is leading a 60-member business delegation to strengthen trade, investment and technology partnerships. The visit concludes on 22 November.
India and Israel have been negotiating the FTA since 2010, completing eight rounds so far. Talks resumed in 2021 after a long pause, and the review during the visit is aimed at assessing the ground covered and the way forward.
The visit comes amid a decline in bilateral trade. India’s exports to Israel fell 52 per cent to USD 2.14 billion in 2024-25 from USD 4.52 billion the previous year, while imports dropped 26.2 per cent to USD 1.48 billion. Despite the slowdown, Israel remains India’s second-largest trading partner in Asia. Trade spans diamonds, petroleum products, chemicals, electronics, medical equipment and high-tech machinery.
Goyal will meet Israel’s Minister of Economy and Industry Nir Barkat, along with several other ministers, to deepen cooperation across agriculture, water, defence, emerging technologies, life sciences, infrastructure and advanced manufacturing. Both sides will also explore new opportunities for collaboration between Indian and Israeli businesses, including start-ups.
The minister will address the India-Israel Business Forum and take part in the fourth high-level CEOs Forum, which brings together top industry leaders from both countries. He will also hold meetings with senior executives from leading Israeli firms in agriculture, desalination, cyber security, smart mobility and infrastructure, and interact with major investors.
Earlier in September, India and Israel signed a Bilateral Investment Agreement (BIA) that reduces the local-remedy exhaustion period for Israeli investors from five years to three. The agreement, which also covers portfolio investments, makes Israel the first OECD member country to sign such a pact with India.
From April 2000 to June 2025, India received USD 337.77 million in foreign direct investment from Israel. |
