India, Israel Finalise Terms For Trade Deal; Piyush Goyal Sees Big Boost To Ties

India and Israel on Thursday finalised the terms of reference for a free trade agreement to cement commercial ties between the close strategic allies.

The FTA will be a force multiplier in India-Israel relations, said Commerce Minister Piyush Goyal in Tel Aviv at the presence of Israel Economy Minister Nir Barkat. The two countries are eyeing $30-40 billion in bilateral trade in the coming years, and then taking it to $65 billion in the next decade.

"We have entered into negotiations for a free trade agreement soon after having executed a bilateral investment treaty. The two will collectively open the door to greater market access, flow of capital, investment, trade, remove obstacles in doing business, provide clarity, predictability and stability to our economic engagement. We are two strategic partners with deep rooted friendship," Goyal said at a press conference.

Barkat said Israel is open to creating joint ventures for large-scale manufacturing projects with Indian partners in India. "India will be a priority for Israel. It will be the hub for Israel in Asia. Our governments will make trade simple."

He also met Israeli Finance Minister Bezalel Yoel Smotrich.

Goyal said Israel is not demanding access in dairy, rice, sugar etc, and instead want to ship goods from India. There will be mutual market access, reduced duty structure for items on a reciprocal basis and reduction in non-tariff barriers.

Goyal is accompanied by a 60-member business delegation, featureing some of India’s biggest names like Mahindra, Amul, Asian Paints, as well as startups and companies across pharma, agritech, defence, construction and e-commerce.

The India-Israel FTA talks first began in May 2010 and have seen eight rounds so far, with negotiations formally revived in October 2021.

Trade between the two nations stood at $6.5 billion in FY24, though India’s exports to Israel dipped 52% in 2024-25 to $2.14 billion, while imports fell 26.2% to $1.48 billion.