The way for a free trade agreement between India and Israel may be cleared. Teams from India and Israel may meet next month to discuss the proposed Free Trade Agreement (FTA). In November, both the countries signed the Terms of Reference to start formal negotiations on this agreement. Its objective is to promote mutual trade and investment. According to media reports, issues related to the structure of India-Israel FTA are expected to be decided in the meeting to be held in January. It has also been told that Israel's trade representatives are going to come to India for talks.
During the financial year 2024-25, India's exports to Israel declined by 52 percent to $2.14 billion from $4.52 billion in 2023-24. At the same time, imports also declined by 26.2 percent to 1.48 billion dollars in the last financial year. During this period, the total bilateral trade between the two countries stood at 3.62 billion dollars.
India is Israel's second largest trading partner in Asia. Although trade between the two countries is mainly based on diamonds, petroleum products and chemicals, trade in sectors such as electronic machinery and high-tech products, communication systems and medical devices has also increased in recent years.
Major exports from India to Israel include pearls and precious stones, automotive diesel, chemical and mineral products, machinery and electrical equipment, plastics, textiles and ready-made garments, base metals and transport equipment, as well as agricultural products. At the same time, imports from Israel to India include pearls and precious stones, chemical and mineral/fertilizer products, machinery and electrical equipment, petroleum oil, defense related goods, machinery and transport equipment.
