How can the new FTA between India and Israel change the game of trade? Piyush Goyal reveals plan to implement in two phases, quick profits, big investments and hidden opportunities in technology – is your business ready?
Free Trade Agreement India Israel: India and Israel are planning to implement their proposed Free Trade Agreement (FTA) in two phases. Union Minister Piyush Goyal said that its objective is to provide immediate benefits to the trade community of both the countries and to increase investment and technology cooperation.
Why the plan to implement FTA in two phases?
Piyush Goyal said that India-Israel FTA is being considered for implementation in two parts. The first phase will focus on simple and quick to implement rules, so that the trade community gets immediate benefits. Complex and sensitive issues will be included in the second phase. This will ensure initial benefits for businesses and investors of both the countries.
What changes will there be in ToR?
The India-Israel ToR (Terms of Reference) includes steps like removing tariff and non-tariff barriers, facilitating market access, simplifying customs procedures, enhancing technology and innovation cooperation, and encouraging trade in services. These steps will make FTA business friendly and investment attractive.
Are big opportunities opening up for Indian companies?
Piyush Goyal also mentioned Israel’s big metro project. The USD 50 billion project in Tel Aviv involves 300 km of underground tunneling. Public and private companies of India can bid in it. Goyal says Indian companies already have the experience and capability, and Israel also wants India to be a part of this big project.
What’s new in R&D and technology cooperation?
Both countries will focus on R&D and innovation. Its objective is to take advantage of each other’s market and skill set. Indian companies will get the opportunity to invest in high-tech and joint projects, which can increase business in the long run.
What is the condition of India-Israel trade?
India’s exports to Israel declined by 52% to USD 2.14 billion in 2024-25. Imports also declined to 1.48 billion USD. Total trade stood at 3.62 billion USD. India is Israel’s second largest trading partner in Asia. Exports include pearls, precious stones, chemicals, machinery, electrical equipment and textiles. Imports include petroleum, defence, machinery and electronic machinery.
What will be the benefits of India-Israel FTA?
- Quick and easy benefits for the trade community
- Increasing R&D and technology investment
- Business expansion in high-tech and electronic products
- Opportunities for Indian companies in big projects
- Easy custom and market access