India and Israel’s free trade agreement (FTA) talks are expected to be in focus during Commerce and Industry Minister, Piyush Goyal’s three-day visit to Tel Aviv this week, a statement from the commerce industry said on Wednesday.
Beginning November 20, the minister will lead a 60-member business delegation to Israel, where he is slated to hold discussions with leaders and business houses during the India-Israel Business Forum, a CEOs Forum, and review the progress of the Bilateral Investment Agreement (BIA) that the two countries inked in September, under which India has cut down the local remedies exhaustion period for Israeli investors from five years to three years.
“Progress on the proposed India-Israel FTA is also expected to be reviewed,” the commerce ministry said.
Goyal will hold talks with the Minister of Economy and Industry of Israel, Nir Barkat, and other ministers.
The India-Israel BIA is especially of prominence since Israel is the first OECD (Organisation for Economic Co-operation and Development) member with which India has inked this agreement. The BIA is aimed at providing comfort to investors of both countries and includes portfolio investments, which is a deviation from such treaties in the past.
The statement from the commerce industry said Goyal’s visit will include discussions with leaders and businesses on ways to strengthen trade and investment ties, advance cooperation in key sectors such as agriculture, water, defense, emerging technologies, life sciences, infrastructure, advanced manufacturing and exploring opportunities for enhanced collaboration between businesses of both countries, including start-ups.
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India is Israel’s second-largest trading partner in Asia. Between the period of April 2000 and June 2025, India received USD 337.77 million foreign direct investment (FDI) from Israel.
Though bilateral merchandise trade between the two nations is dominated mainly by diamonds, petroleum products, and chemicals, there have emerged other trade areas in recent years, such as electronic machinery and high-tech products, communications systems, medical equipment.
However, during 2024-25, India’s exports to Israel dipped 52 per cent to USD 2.14 billion from USD 4.52 billion in 2023-24. Imports, too, fell 26.2 per cent to USD 1.48 billion last fiscal year.
While India and Israel have held eight rounds of talks to negotiate an FTA since May 2010, it was only in October 2021 that the two countries agreed to resume the negotiations.
Major exports from India to Israel include pearls and precious stones, automotive diesel, chemical and mineral products, machinery and electrical equipment, plastics, textiles, apparel, base metals and transport equipment, and agricultural products.
Imports include pearls and precious stones, chemical and mineral/fertiliser products, machinery and electrical equipment, petroleum oils, defense, machinery, and transport equipment.
The India-Israel Business Forum that the union minister will participate in involves leading business associations and industry representatives from both sides, while the fourth edition of the high-level CEOs Forum would be held with prominent CEOs from both sides.
Goyal will also meet senior leaders from major Israeli companies in fields such as agriculture, desalination and wastewater treatment, cyber security, smart mobility, infrastructure among others, and interact with prominent Israeli investors.
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