India and Israel Conclude Second Round of Negotiations for Proposed Free Trade Agreement

Key Highlights:

• India and Israel concluded the second round of negotiations for a proposed Free Trade Agreement (FTA).
• The negotiations took place from July 20-23, 2026, at Vanijya Bhawan, New Delhi.
• The aim is to achieve a balanced, comprehensive, and mutually beneficial FTA between the two nations.
• Bilateral merchandise trade between India and Israel stood at USD 3.93 billion in FY 2025-26.
• Discussions covered key areas including trade in goods, services, Rules of Origin, and Intellectual Property Rights (IPR).

Detailed Insights:

• The negotiations were structured by the Terms of Reference (ToR), which were signed in November 2025.
• The proposed FTA seeks to significantly enhance bilateral trade, investment, and economic integration.
• Technical experts from both sides engaged in detailed deliberations to narrow gaps and identify areas of convergence.
• India's Chief Negotiator, Shri Ajay Bhadoo, reaffirmed India's commitment to a balanced agreement.
• Israel's Chief Negotiator, Ms. Yifat Alon Perel, emphasized maintaining the momentum towards an ambitious outcome.
• Both countries reiterated their commitment to an early conclusion of the comprehensive agreement.

Key Concepts Involved:

• Free Trade Agreement (FTA): An international treaty between two or more economies to reduce or eliminate certain barriers to trade.
• Terms of Reference (ToR): A document defining the purpose, scope, and structure of a project, committee, or negotiation.
• Rules of Origin: Criteria used to determine the national source of a product, essential for applying tariffs and trade policies.
• Intellectual Property Rights (IPR): Legal rights granted to creators for their original works, inventions, or artistic creations.