India’s Commerce Minister Piyush Goyal and Israel’s Economy and Industry Minister Nir Barkat
India and Israel are considering implementing their proposed Free Trade Agreement (FTA) in two parts, so that business people of both the countries can get benefits quickly. This information was given by Commerce and Industry Minister Piyush Goyal on Sunday. India and Israel on Thursday signed the Terms of Reference (TOR) to start formal negotiations on this agreement.
These rules include increasing market access for goods, reducing taxes and other barriers on goods, making investment easier, simplifying customs procedures, increasing cooperation in sharing new ideas and technology and relaxing rules to promote services trade. Piyush Goyal said that we are considering completing this agreement in two phases. A decision on this will be taken after the talks begin. Both countries want the first phase to be completed quickly, so that business people can reap benefits quickly.
The minister has come to Israel to discuss ways to increase bilateral trade and investment. He is leading a business team of 60 people. Both the countries have decided not to touch sensitive issues for the time being. Goyal said that both the countries will also see how innovation and research can bring more investment in each other’s country. We will work on joint projects, where we can benefit from their expertise and they can benefit from a big market like India.
India-Israel trade
In September 2025, India exported $178 million and imported $121 million from Israel, resulting in a positive trade balance of $56.8 million. Between September 2024 and September 2025, India’s exports to Israel declined by 5.19%, or about $9.74 million, from $188 million to $178 million, while imports declined by about 20%, or $31.1 million, from $152 million to $121 million.