India and Israel have concluded the second round of negotiations for their proposed Free Trade Agreement (FTA), with technical teams from both sides completing four days of structured deliberations in New Delhi on 25 July 2025. The Commerce Ministry confirmed that discussions spanned all chapters of the proposed agreement and that both sides continued to make progress toward a balanced, comprehensive, and mutually beneficial deal.

What Was Covered at the Table

Technical experts from India and Israel held dedicated sessions across a broad range of trade disciplines, including trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, intellectual property rights, customs procedures and trade facilitation, and economic cooperation. The depth of agenda signals that both sides are moving beyond preliminary positions into substantive gap-narrowing.

The discussions were described as 'constructive and forward-looking' in the Commerce Ministry statement, with delegations engaging in detailed technical deliberations aimed at identifying areas of convergence.

Framework and Trade Backdrop

The negotiations are anchored by a Terms of Reference (ToR) document signed in November 2025, which provides the structured framework for talks across the identified areas. Total merchandise trade between the two countries stood at $3.93 billion in FY 2025-26, reflecting a relationship with strong sectoral complementarities that an FTA could significantly deepen.

This is the second formal round since negotiations formally commenced, and the pace of technical engagement suggests both governments are keen to maintain momentum.

What the Chief Negotiators Said

Ajay Bhadoo, Additional Secretary in the Department of Commerce and India's Chief Negotiator, reaffirmed New Delhi's commitment to reaching a balanced and comprehensive agreement that would strengthen bilateral trade and economic relations. On the Israeli side, Yifat Alon Perel, Senior Director of Trade Policy and Agreements and Deputy Trade Commissioner at Israel's Foreign Trade Administration, Ministry of Economy and Industry, acknowledged the progress achieved since the first round and stressed the importance of sustaining momentum toward an ambitious outcome.

Why This Deal Matters

An India-Israel FTA would formalise and expand a trade relationship that already spans defence, agriculture, water technology, and pharmaceuticals. India's push to diversify its FTA portfolio — it has concluded agreements with the UAE and the UK in recent years — makes the Israel pact part of a broader strategic trade realignment. For Israel, deeper access to one of the world's fastest-growing consumer markets carries significant economic weight, particularly as it seeks to widen its trade ties beyond traditional Western partners.

Both sides reiterated their commitment to concluding the FTA at the earliest, according to the Commerce Ministry statement. A third round of negotiations is expected to follow as technical work continues.