India, Israel set to seal first phase of FTA; Piyush Goyal says pact will boost trade, investment

India and Israel are moving closer to finalising the first phase of their proposed Free Trade Agreement (FTA), a development expected to lift bilateral trade and deepen cooperation across technology, agriculture, innovation and investment. Commerce and Industry Minister Piyush Goyal, who concluded a three-day visit to Israel, said both nations were keen to accelerate the process so that businesses on both sides benefit sooner.

Goyal’s visit marked the first by an Indian Commerce Minister to Israel in two decades and, according to him, had been “very successful”, setting the stage for expanded engagement in the coming months.

Trade, investment and innovation to see a major push

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Speaking in Jerusalem, Goyal said the two countries were aligned on fast-tracking the first phase of the FTA, followed later by the full agreement in a second phase. He underlined that India and Israel have historically demonstrated the ability to “convert a crisis into an opportunity”, and that the agreement would help both economies tap new avenues of cooperation.

He said the deal is expected not only to boost trade volumes but also to improve collaboration in innovation, research and development. Investment flows between the two countries are also likely to see a significant rise once the first phase is operational.

Agriculture, technology and R&D emerge as priority sectors

During his engagements, Goyal held detailed discussions with several Israeli ministers, including the agriculture and finance ministers. Israel’s finance minister also conveyed satisfaction over the completion of the bilateral investment treaty between the two countries, calling it a “new era” for trade relations. Goyal said this development had further strengthened the foundation for the forthcoming FTA.

Indian diaspora and cultural ties highlighted

Goyal also addressed members of the Indian community in Jerusalem at a special gathering alongside Israeli minister Nir Barkat. He emphasised the deep cultural and historical bonds between the two nations and called on the diaspora to contribute to India’s journey towards Viksit Bharat.

Earlier, he visited the Indian Hospice in Jerusalem, describing it as a “living symbol of Bharat’s historic, cultural and spiritual ties” with the city.

Negotiations gather pace after Terms of Reference signed

Goyal confirmed that both countries have now signed the Terms of Reference that will guide the FTA negotiations. This allows the process to formally move into structured discussions, with both sides expected to meet again soon.

He said his interactions with government leaders and industry representatives revealed “a great deal of enthusiasm” for strengthening economic ties, reflecting the growing strategic alignment between India and Israel.