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India and Israel Relaunch FTA Talks With New Terms of Reference

The framework sets a focused agenda to revive a shrinking trade relationship through market access, investment facilitation, customs simplification and technology collaboration.

Overview

  • Commerce Minister Piyush Goyal and Israel’s Economy Minister Nir Barkat signed the Terms of Reference in Tel Aviv, formally restarting negotiations that had stalled after eight rounds through 2021.
  • The ToR outlines talks on eliminating tariff and non-tariff barriers for goods, easing services trade, facilitating investment and simplifying customs procedures.
  • Both sides agreed to keep sensitive areas out of the initial negotiating phase to maintain a practical, balanced track for progress.
  • Technology and innovation feature prominently, with officials exploring a potential startup bridge and collaboration in cybersecurity, medtech, mobility and low‑carbon industry, reinforced by CEO Forum engagements.
  • Bilateral trade, which peaked at about $10.77 billion in 2022–23 before falling sharply in 2024–25, provides the backdrop for Goyal’s meetings in Israel, including new agricultural cooperation discussions with Minister Avi Dichter on precision farming, drip irrigation and desert agriculture.