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India and Israel Relaunch FTA Talks With Possible Two-Phase Path After Goyal’s Visit

New terms of reference chart a wide-ranging agenda to accelerate negotiations focused on market access, services liberalisation and technology transfer.

Overview

  • Commerce Minister Piyush Goyal said both sides are considering a two-tranche rollout that prioritises quick wins while setting aside sensitive issues for later.
  • The signed terms of reference formally restart negotiations after a decade-long pause and include tariff and non-tariff barrier cuts, simpler customs and investment facilitation.
  • Goyal met Prime Minister Benjamin Netanyahu, President Isaac Herzog and key ministers while leading a 60‑member business delegation for forums that generated more than 250 B2B meetings.
  • The Global Trade Research Initiative urged a focus on strategic sectors such as defence manufacturing, semiconductors, water technology, precision agriculture and cybersecurity, noting modest goods trade of about USD 3.6 billion in FY2025.
  • Israel has issued pre-qualification documents for a USD 50 billion Tel Aviv metro project, with Goyal encouraging Indian firms to participate in the bidding.