MUMBAI : An official said on Wednesday that trade representatives from Israel are expected to arrive in India in January to take forward negotiations on the India–Israel FTA. The meeting is expected to focus on structuring the agreement and identifying key areas of cooperation.
In November, India and Israel signed the terms of reference to formally initiate negotiations for the FTA, which aims to boost bilateral trade and investments between the two countries.
The talks come at a time when trade volumes have seen a sharp decline. During 2024–25, India’s exports to Israel fell by 52 per cent to USD 2.14 billion, compared to USD 4.52 billion in 2023–24. Imports from Israel also declined by 26.2 per cent to USD 1.48 billion in the last fiscal year, taking total bilateral trade to USD 3.62 billion.
Despite the slowdown, Israel remains India’s second-largest trading partner in Asia.
Bilateral merchandise trade has traditionally been dominated by diamonds, petroleum products and chemicals. However, recent years have seen growing engagement in electronic machinery and high-tech products, communication systems and medical equipment.
Major Indian exports to Israel include pearls and precious stones, automotive diesel, chemical and mineral products, machinery and electrical equipment, plastics, textiles and apparel, base metals, transport equipment and agricultural products. Imports from Israel comprise pearls and precious stones, chemical and mineral and fertiliser products, machinery and electrical equipment, petroleum oils, defence equipment and transport machinery.
India and Israel are set to revive trade talks in January, focusing on a Free Trade Agreement (FTA) to enhance bilateral trade and investments. This comes after a significant decline in trade volumes, with India's exports to Israel dropping by 52% in 2024–25. The discussions aim to identify key cooperation areas and boost economic ties.