India and Israel Launch Free Trade Agreement Negotiations: Strengthening Economic Ties and Strategic Partnership

Piyush Goyal highlighted the complementarity of the two economies. (Image posted on X by @PiyushGoyal)

Tel Aviv:

India and Israel have officially signed the Terms of Reference (ToR) to initiate negotiations for a Free Trade Agreement (FTA), representing a crucial milestone in strengthening economic relations between the two nations.

The formal signing ceremony took place in Tel Aviv with India's Minister of Commerce and Industry, Piyush Goyal, and Israel's Minister of Economy and Industry, Nir Barkat, in attendance.

During the event, Minister Goyal confirmed that both countries have agreed to begin negotiations for a comprehensive FTA.

He emphasized that the proposed agreement would significantly boost bilateral economic engagement between the two nations.

According to Goyal, the FTA will create greater market access opportunities, enhance capital flow, and increase investments and trade in both goods and services sectors.

He further noted that the agreement would help eliminate business barriers while providing clarity, predictability, and stability to economic relations between India and Israel.

The minister expressed that both strategic partners with their longstanding ties are "destined to bigger achievements and greater friendship."

Goyal highlighted the complementary nature of the two economies, stating, "We are two countries which really don't compete with each other, which open the doors to products, goods, services and investments, where we act as a force multiplier for both countries, and we are ambitious to finalize a win, win, fair, equitable and balanced free trade agreement between our two democracies."

Emphasizing India's innovation capabilities, Goyal pointed to the country's strong intellectual property rights framework and its position as the world's third-largest startup ecosystem.

He also mentioned India's increasing focus on deep-tech sectors including artificial intelligence, quantum computing, and machine learning, alongside the nationwide expansion of data infrastructure.

The commencement of FTA negotiations is expected to enhance cooperation in technology, innovation, trade, and investment domains, further strengthening the strategic partnership between India and Israel.