Union Commerce and Industry Minister Piyush Goyal concluded a "very successful" three-day visit to Israel, solidifying the strategic partnership between the two nations and paving the way for enhanced cooperation across trade, innovation, agriculture, and investment. Goyal, accompanied by a 60-member business delegation, engaged in high-level bilateral meetings and discussions with Israeli government and industry leaders, expressing optimism about the future of India-Israel relations.
FTA Negotiations Launched
A key outcome of the visit was the signing of the Terms of Reference (ToR) to formally launch negotiations for a comprehensive Free Trade Agreement (FTA). This agreement aims to significantly boost bilateral economic relations by covering trade in goods and services, investment promotion and protection, market access and regulatory cooperation, and technology transfer and innovation partnerships. The FTA is expected to eliminate tariff barriers and reduce non-tariff barriers, expediting approvals and market access for businesses in both countries. Goyal stated that the FTA would be finalized in tranches, with the initial tranche being prioritized for early conclusion. The FTA talks are expected to cover various sectors, including agriculture, pharmaceuticals, electronics, defense, and digital services.
Boosting Trade and Investment
The FTA is expected to significantly enhance bilateral trade, which has seen considerable growth since the establishment of diplomatic relations in 1992. While bilateral trade reached a peak of US$10.77 billion in FY 2022-23, it has since declined due to regional security concerns. The FTA is envisioned to reverse this trend and unlock new opportunities for businesses in both countries, with potential for bilateral trade to reach $30-40 billion over the next five years.
Israel's Economy Minister Nir Barkat sees the FTA as a catalyst for increased investment, calling India "a great bet for investment" and praising the "Make in India" initiative. India received $337.77 million in foreign direct investment from Israel between April 2000 and June 2023. In September 2025, the two countries signed a Bilateral Investment Agreement (BIA), reducing the local remedies' exhaustion period for Israeli investors in India from five years to three.
Focus on Innovation and Technology
Recognizing the importance of technology and innovation, Goyal emphasized the potential for collaboration between Indian and Israeli startups. Key areas of focus include cybersecurity, medical devices, mobility, climate action, and green steel. A proposed "startup bridge" between Israel and India could further boost innovation and technology partnerships, leveraging India's scale and Israel's expertise. Goyal expressed India's aspiration to become the startup capital of the world, viewing Israeli partnerships as crucial to achieving this goal.
Agricultural Cooperation
India and Israel are also strengthening their cooperation in the agriculture sector. Goyal met with Israeli Minister of Agriculture and Food Security Avi Dichter to discuss advancing agricultural collaboration, with a focus on soil and water management, horticultural and agricultural production, and post-harvest technology. India has chosen Israel as a strategic partner in agriculture, with the Indo-Israeli Agriculture Project (IIAP) established in 2006 to enhance productivity, improve produce quality, and maximize farmers' income. The IIAP focuses on introducing crop diversity, refining cultivation techniques, and optimizing irrigation and fertigation.
Tel Aviv Metro Project
During the visit, Israel strongly encouraged Indian companies to bid for the $50 billion Tel Aviv Metro project, which includes nearly 300 km of underground tunneling. Goyal noted that several Indian infrastructure firms have the capabilities to participate in the project, potentially generating significant employment in India.
Overall, Piyush Goyal's visit to Israel underscored the commitment of both nations to deepen their strategic and economic partnership. The launch of FTA negotiations, coupled with enhanced cooperation in innovation, agriculture, and infrastructure, signals a new chapter in India-Israel relations, promising significant benefits for both economies.
