Archive · 24 Nov 2025
India-Israel FTA Focus on Strategic Tech
India and Israel are planning to start a free trade agreement (FTA) in two parts to help businesses on both sides quickly.
This comes after a big drop in trade between the two countries.
The agreement will make it easier to trade goods, invest, and work together on technology and services.
India's minister, Piyush Goyal, is in Israel to talk about this and other ways to boost trade and investments.
The focus is on strategic cooperation in areas like defense, semiconductors, and tech rather than just merchandise trade.
India and Israel plan to implement the FTA in two phases for early benefits
Exports to Israel dropped by 52% in FY25, imports fell by 26.2%
Both countries finalized terms of reference (ToR) for FTA negotiations
ToR includes market access, investment facilitation, simplified customs, innovation, and services trade
India and Israel may roll out the FTA in two phases to deliver early gains
- Who
- India and Israel
- What
- Plan to implement a free trade agreement (FTA) with a focus on strategic cooperation in defense, semiconductors, and tech
- When
- Recently finalized terms of reference (ToR) and considering two-phase implementation
- Where
- Between India and Israel
- Why
- To boost bilateral trade and strategic cooperation in key sectors
Proponents of Early FTA Implementation
Cautious Stakeholders
Speed of Implementation
Proponents of Early FTA Implementation
Proponents argue for a quick first phase to deliver early gains to businesses
Cautious Stakeholders
Cautious stakeholders may prefer a more thorough and balanced approach to avoid potential pitfalls
- Current Total Trade
- USD 3.62 billion
- India's Exports to Israel in 2024-25
- USD 2.14 billion
- India's Imports from Israel in 2024-25
- USD 1.48 billion
- Major Exports from India
- Pearls, diesel, chemicals, machinery, plastics, textiles, base metals, transport equipment, agricultural products
- Major Imports from Israel
- Pearls, fertilizers, petroleum oils, machinery, transport equipment, defense supplies
- Key Export Items from India
- Cut and polished diamonds, rice, organic chemicals, ceramic tiles, aircraft parts
- Key Import Items from Israel
- Diamonds, electronics, fertilizers, insecticides, machinery
Sources
India-Israel plan to implement FTA in two phases for early benefits, says Piyush Goyal, as exports drop 52% in FY25
Chasing early wins: India and Israel may roll out proposed FTA in two phases
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