Overview The first round of negotiations for the India–Israel Free Trade Agreement (FTA) was held from 23 to 26 February 2026 in New Delhi and concluded successfully. The discussions were guided by the Terms of Reference (ToR) signed in November 2025. Key Developments Prime Minister Shri Narendra Modi , during his state visit to Israel, urged an early finalisation of the FTA to tap untapped trade potential. Union Minister of Commerce and Industry Shri Piyush Goyal met the Israeli delegation, emphasizing a modern, comprehensive and future‑ready agreement. Negotiations covered Rules of Origin , sanitary and phytosanitary measures (SPS) , technical barriers to trade (TBT) , customs procedures, intellectual property rights, and digital trade . Both sides agreed to continue virtual inter‑sessional engagements and scheduled the next in‑person round for May 2026 in Israel . Important Facts Bilateral merchandise trade stood at approximately USD 3.62 billion in FY 2024‑25 . The FTA aims to boost sectors such as machinery, chemicals, textiles, agriculture, medical devices and advanced technologies. By providing a stable, predictable framework, the agreement is expected to enhance trade flows, attract investment and foster innovation. UPSC Relevance The negotiations illustrate India’s strategic use of bilateral trade agreements to diversify export markets and acquire advanced technology, a topic under GS3: Economy . Understanding the components— Rules of Origin , SPS , TBT and digital trade —are essential for answering questions on trade policy, WTO commitments and India’s economic diplomacy. Way Forward Stakeholders anticipate that the May 2026 round will address remaining technical issues, finalise tariff concessions and set implementation timelines. Successful conclusion of the FTA could serve as a model for future agreements with other technologically advanced economies, reinforcing India’s goal of a “modern, comprehensive and future‑ready” trade architecture.