India and Israel have formally initiated negotiations for a Free Trade Agreement (FTA), a move that Commerce and Industry Minister Piyush Goyal described as a major milestone toward boosting trade, economic cooperation, and strategic ties between the two nations.
Speaking at the launch of discussions, Goyal highlighted that India and Israel share “complementary economies,” meaning both can benefit significantly from reduced trade barriers, simplified customs processes, and expanded market access. He emphasised the need to develop a fair, balanced, and mutually beneficial FTA that supports long-term growth.
The proposed agreement is expected to unlock greater collaboration in key sectors such as agriculture, water technology, defence, clean energy, infrastructure, digital services, and advanced manufacturing. Goyal noted that India’s strength in innovation—particularly in deep-tech fields like AI, machine learning, and quantum technology—aligns well with Israel’s expertise in cybersecurity, agritech, and high-end research.
On the investment front, the minister said that the FTA, along with a future Bilateral Investment Treaty, would enhance predictability for businesses, reduce operational challenges, and encourage higher capital flows between the two countries. Both sides may keep certain sensitive sectors outside the immediate scope of the agreement to ensure stability and safeguard domestic industries.
Goyal also expressed confidence that bilateral trade, which has steadily grown in recent years, could be increased multiple times once the FTA takes shape. He reaffirmed that the agreement would serve not just economic objectives but also strengthen the broader strategic partnership built on shared democratic values and technological cooperation.
The ongoing negotiations mark a renewed push by both governments to deepen ties and lay the foundation for a long-term, future-ready economic partnership.
