India-Israel FTA talks set for May 2026 as India expands global trade footprint

India is increasing its international trade activities while following its Viksit Bharat development plan. The country shows greater international market integration today than it did decades ago, as its export activities, services trade and trade agreements with other nations have all expanded.

A press note released by the Press Information Bureau (PIB) on Friday, citing the UNCTAD Trade and Development Report 2025, highlighted that India ranks third among Global South economies in the diversity of trade partnerships, surpassing all Global North nations. The situation demonstrates how India maintains its strength during international trade difficulties and new challenges which arise.

Next round of India-Israel FTA talks in May 2026

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India has accelerated its engagement on Free Trade Agreements (FTAs) with key partners, including Israel, Canada, and the United States, marking a significant phase in trade diplomacy.

The first round of negotiations on the India-Israel FTA has been successfully concluded. Officials from both sides discussed a wide range of issues aimed at deepening trade and economic cooperation. The next round of talks is scheduled for May 2026 in Israel, signalling steady progress toward a comprehensive trade pact.

Other key FTA developments

India-Canada FTA

Discussions on an India-Canada FTA are set to begin alongside the upcoming visit of Canadian Prime Minister Mark Carney, signalling a fresh start in bilateral relations.

At the invitation of Prime Minister Narendra Modi, PM Carney will be on an official visit to India from February 27 to March 2.

• February 27-28: Participation in business meetings and interactions with Indian and Canadian CEOs, industry leaders, financial experts and investors.
• March 1: Arrival in New Delhi.
• March 2: Bilateral talks between PM Modi and PM Carney at Hyderabad House, including delegation-level discussions.

The talks will focus on trade, investment, energy, critical minerals, agriculture, education and innovation, along with regional and global issues. Both leaders will also participate in the India-Canada CEOs Forum.

India-US Trade Engagement

On the India-US front, a commerce minister-level meeting was held recently, where both sides discussed trade deals and broader commercial relations. Officials indicated that discussions could soon resume with greater clarity on the new US tariff regime, raising expectations of renewed momentum in bilateral trade talks.

Major completed FTAs:

India’s bilateral and multilateral Free Trade Agreements (FTAs) are key pillars of its strategy to expand trade, investment, and employment, while supporting export-oriented industries.

India-EU FTA - The 'Mother of All Deals'

Concluded in January 2026, the India-EU FTA provides preferential access across 97 per cent of EU tariff lines (99.5 per cent of trade value). Immediate duty elimination applies to 70.4 per cent of tariff lines, benefiting labour-intensive sectors including textiles, leather, gems & jewellery, tea, coffee, spices, sports goods, toys, and select marine products. Services commitments cover 144 subsectors, including IT/ITeS, professional, education, and business services. Sensitive agricultural products remain protected.

India-UK CETA

Signed in 2025, the Comprehensive Economic and Trade Agreement (CETA) provides duty-free access to nearly 99 per cent of India’s exports to the UK. It facilitates smoother mobility for Indian professionals in IT, healthcare, finance, and education and introduces a Double Contribution Convention for social security, saving over Rs 4,000 crore for Indian companies and professionals.

India-Oman CEPA

Effective December 2025, India-Oman CEPA provides zero-duty access on 98 per cent of Omani tariff lines. It supports sectors such as agriculture, textiles, leather, gems & jewellery, engineering, pharmaceuticals, and automobiles. For the first time, Oman has committed to traditional medicine (AYUSH) and services mobility for professionals.

India-New Zealand FTA

Concluded in 2025, this agreement grants zero-duty access for all tariff lines, benefiting labour-intensive sectors, farmers, and MSMEs. It includes an investment commitment of USD 20 billion over 15 years.

India-EFTA TEPA

Effective October 2025, the Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association covers 92.2 per cent of tariff lines, strengthens services cooperation, and includes an investment commitment of USD 100 billion over 15 years, expected to generate 1 million direct jobs.

India-UAE CEPA and India-Australia ECTA

The India-UAE CEPA has boosted bilateral trade past USD 100 billion, with strong gains in electrical machinery, chemicals, and smartphones. India-Australia ECTA, effective from 2022, provides zero-duty access across all Australian tariff lines, enhances services cooperation in IT, healthcare, education, and audio-visual services, and supports export growth for labour-intensive sectors.

India-Mauritius CECPA

India’s first African trade pact, effective 2021, provides preferential market access for over 300 products and 115 services subsectors, deepening bilateral trade and investment cooperation.

Domestic enablers supporting trade competitiveness

India continues to improve its export performance through various programs, which include the Trade Connect ePlatform and Export Promotion Mission (EPM), as well as the Credit Guarantee Scheme and the liquidity measures implemented by RBI. The press note also noted that the Union Budget 2026-27 increases trade competitiveness through its extended timelines and duty-free input provision for specific sectors, and its simplified logistics processes.