India’s Commerce Minister Piyush Goyal and Israel’s Economy and Industry Minister Nir Barkat
India-Israel Free Trade Agreement: The old friendship between India and Israel has now entered a new and business chapter. A historic event has taken place in Tel Aviv today in terms of relations between India and Israel. The terms of the Free Trade Agreement (FTA), which was awaited for a long time, have finally been finalized. Union Commerce Minister Piyush Goyal has signed the terms of this agreement along with his Israeli counterpart Nir Barkat.
What was special in Tel Aviv?
Commerce and Industry Minister Piyush Goyal is currently on a three-day visit to Israel with a 60-member Indian business delegation. The main agenda of the visit was to review the progress of the proposed Free Trade Agreement (FTA), and the news that came from Tel Aviv on Wednesday was quite positive.
Now the ministers of both the countries have together finalized the terms of the agreement and have also officially signed it. During this, new ways to increase bilateral trade, investment and innovation were also discussed between Piyush Goyal and Israeli Industry Minister Nir Barkat. This agreement will work to give a new impetus to the economies of both the countries.
14 years long wait
Talks regarding a free trade agreement between India and Israel are not going on from today, but since May 2010. So far, eight rounds of long talks have taken place between the two countries. There was a pause for some time in between, but in October 2021, both sides agreed to return to the negotiating table.
This agreement has happened at a time when there was a slight decline in business figures. During the financial year 2024-25, exports from India to Israel had declined to $2.14 billion from $4.52 billion last year. At the same time, a decline was also recorded in imports. In such a situation, ratifying the terms of FTA will act as a ‘booster dose’ to bring the trade of both the countries back on track and take it to new heights.
From diamonds and gems to high-tech… what will change?
It is important to know that what do we trade with Israel? India is Israel’s second largest trading partner in Asia. Traditionally our trade has mainly depended on diamonds, petroleum products and chemicals. But with changing times, transactions have also increased in modern sectors like electronic machinery, high-tech products, communication systems and medical equipment.
India exports items like pearls, precious stones, motor vehicle diesel, machinery, textiles, apparel and agricultural products to Israel on a large scale. After this agreement, it is expected that the access of these Indian products to the Israeli market will become easier, due to which Indian manufacturers and farmers can get direct benefits.