Israel and India have announced the renewal of Free Trade Agreement talks in what the Israeli Economy Ministry called “a new milestone in the countries’ economic relations.”
Minister of Economy and Industry, Nir Barkat, said: “Today we are opening a new chapter in trade relations between Israel and India. The official renewal of negotiations on a Free Trade Agreement is a strategic achievement that strengthens the Israeli economy and creates tremendous opportunities for our exporters and industrialists. India is an economic powerhouse with immense potential for cooperation, and the personal and direct ties built between the countries enable us to advance agreements that will generate growth, innovation, and jobs for Israelis. This is another step in building a strong, competitive, and globally open economy.”
India’s Minister of Economy, Piyush Goyal, said: “This is my first visit to Israel with a large group of industrialists, and I already feel at home. Congratulations to my brother! Nir Barkat on this historical moment where we both enter negotiations in conversations on Free Trade Agreements. This is a match made in heaven. India for Israel and Israel for India. Together with the investment agreements already signed on both sides, we will open the markets together for movements with goods, different services and investments. We are aiming for a fair agreement, wide and good for both sides”.
The historic visit of India’s Minister of Commerce and Industry, Piyush Goyal, who arrived in Israel at the head of a delegation of about 100 representatives from approximately 70 companies and senior business leaders in Indian industry, has today become a turning point in the economic relations between the two countries. During the visit, MOU was signed to launch renewed negotiations on a Free Trade Agreement between Israel and India-an initiative developed in recent months under the leadership of Israel’s Minister of Economy and Industry, MK Nir Barkat.
Goyal, among the first to make an official visit to Israel since the declaration of the cessation of hostilities, arrived at a time when the Israeli economy is experiencing a recovery momentum and seeking new international growth engines. The very fact of the visit during this period is a clear signal of India’s confidence in the Israeli economy and of the strengthening strategic partnership between the countries.
During the visit, the Israel-India Business Forum is taking place, featuring hundreds of business meetings between leading companies from both countries, as well as a senior CEOs’ forum and tours of Israeli high-tech companies showcasing cutting-edge innovation.
Israel and India have conducted negotiations on a Free Trade Agreement since 2010, without success. In recent years, various attempts were made to resume the talks-yet no real progress was achieved.
The direct relationship between Minister Barkat and his Indian counterpart, alongside the mutual economic interests of the two countries, created a positive and unprecedented momentum that led to the official signing of the renewal of negotiations. This milestone adds to another significant achievement: the bilateral investment protection agreement signed between the countries this past September.
India-the world’s fifth-largest economy, with a population of about 1.4 billion-constitutes a strategic target market for Israeli exports. According to Israel’s Foreign Trade Administration, a Free Trade Agreement could provide Israel with a substantial competitive advantage through the reduction of tariffs and some of the highest trade barriers in the world. The agreement is expected to cover additional areas such as digital trade and services, standards, intellectual property, government procurement, and other fields essential to deepening cooperation.
Israel’s export of goods and services to India reached approximately 3.1 billion dollars in 2024-Israel’s fifth-largest export destination-and grew by 56% over the past four years, despite the decline during the period of war.