In January 2026, trade negotiators from Israel are scheduled to visit India to commence discussions for a comprehensive Free Trade Agreement (FTA). This visit signifies a crucial pre-negotiation round, where both parties will aim to establish the framework for the FTA and address any gateway issues.
The upcoming discussions build upon the Terms of Reference (ToR) signed by India and Israel on November 20, 2025, which formalized the launch of negotiations. The ToR outlines the path toward a balanced and comprehensive FTA, designed to boost trade, investment, and cooperation across sectors like technology, defense, and agriculture. Both nations hope to increase their bilateral trade tenfold within the next decade.
India's Commerce Minister Piyush Goyal and Israel's Economy Minister Nir Barkat signed the Terms of Reference document in Tel Aviv in November to formally launch negotiations for a comprehensive pact to boost trade, investment, and cooperation in technology, defence, and agriculture.
In 2024-25, trade between India and Israel reached $3.62 billion, with India exporting $2.14 billion and importing $1.48 billion. The FTA, complemented by a Bilateral Investment Treaty (BIT) already in place, is expected to create opportunities for enhanced market access, capital flow, investments, and overall trade.
In addition to the talks with Israel, Indian negotiators are preparing for the second round of FTA discussions with the Eurasian Economic Union (EAEU) in February 2026. The first round of discussions between India and EAEU took place in November 2025. The Terms of Reference for the India-EAEU FTA were signed on August 20, 2025, which defines an 18-month plan to diversify markets for Indian businesses, including MSMEs, farmers, and fishermen. Those discussions will also consider services and investments. The EAEU includes Armenia, Belarus, Kazakhstan, and Kyrgyzstan, though the majority of India-EAEU trade is with Russia.
India and Russia are aiming to boost trade beyond energy and achieve a $100 billion target by 2030.
The January talks with Israel underscore both countries' commitment to strengthening economic and strategic ties. By addressing structural and gateway issues early on, India and Israel aim to pave the way for a mutually beneficial FTA that can be finalized in stages.
