India, Israel FTA progress review may figure during Goyal's visit to Tel Aviv

New Delhi: The progress on the proposed India-Israel free trade agreement (FTA) is expected to be reviewed during Commerce and Industry Minister Piyush Goyal's three-day visit to Tel Aviv this week, an official statement said on Wednesday.

The minister is leading a 60-member business delegation to Israel, where he would hold discussions with leaders and businesses on ways to boost bilateral trade, investments, and promote innovation. The visit would conclude on November 22.

"Progress on the proposed India-“Israel FTA is also expected to be reviewed," the commerce ministry said.

India and Israel are negotiating the agreement since May 2010. Eight rounds have been held so far. In October 2021, the two countries agreed to resume the negotiations.

During 2024-25, India's exports to that country dipped 52 per cent to USD 2.14 billion from USD 4.52 billion in 2023-24. Imports, too, fell 26.2 per cent to USD 1.48 billion last fiscal year.

India is Israel's second-largest trading partner in Asia. Though bilateral merchandise trade is dominated mainly by diamonds, petroleum products, and chemicals, recent years have witnessed an increase in trade in areas such as electronic machinery and high-tech products, communications systems, medical equipment.

Major exports from India to Israel include pearls and precious stones, automotive diesel, chemical and mineral products, machinery and electrical equipment, plastics, textiles, apparel, base metals and transport equipment, and agricultural products.

Imports include pearls and precious stones, chemical and mineral/fertiliser products, machinery and electrical equipment, petroleum oils, defence, machinery, and transport equipment.

Goyal will hold talks with the Minister of Economy and Industry of Israel Nir Barkat.

Apart from his Israeli counterpart, Goyal is also expected to meet a few other ministers.

Discussions are expected to focus on strengthening trade and investment ties, advancing cooperation in key sectors such as agriculture, water, defence, emerging technologies, life sciences, infrastructure, advanced manufacturing and exploring opportunities for enhanced collaboration between businesses of both countries, including start-ups, it said.

He will participate in the India-“Israel Business Forum involving leading business associations and industry representatives from both sides.

In addition, the fourth edition of the high-level CEOs Forum would also be held with prominent CEOs from both sides.

He will meet senior leaders from major Israeli companies in fields such as agriculture, desalination and wastewater treatment, cyber security, smart mobility, infrastructure among others, and interact with prominent Israeli investors.

In September, both countries inked a Bilateral Investment Agreement (BIA), under which India has cut down the local remedies exhaustion period for Israeli investors to three years from the earlier five years.

The India-Israel BIA, aimed at providing comfort to investors of both countries, also includes portfolio investments in a deviation from such treaties in the past.

Israel is the first OECD (Organisation for Economic Co-operation and Development) member with which India has inked this agreement.

During April 2000 and June 2025, India received USD 337.77 million foreign direct investment (FDI) from Israel.