New Delhi— Commerce and Industry Minister Piyush Goyal on Sunday said India and Israel were examining a two-stage implementation plan for their proposed Free Trade Agreement (FTA) to ensure faster benefits for businesses in both countries.
His remarks came shortly after the two nations signed the Terms of Reference (ToR) to formally begin negotiations on the long-pending pact.
The ToR outlines key priorities such as reducing tariff and non-tariff barriers, easing customs procedures, boosting investment facilitation, promoting cooperation in innovation and technology transfer, and liberalising services trade. Goyal said negotiators may pursue an agreement in “two tranches”, with the aim of finalising the first phase quickly.
According to him, both sides will initially address the “low-hanging fruit” and temporarily set aside sensitive areas to accelerate progress. Goyal is currently in Israel with a 60-member business delegation and has held meetings with Prime Minister Benjamin Netanyahu and other senior leaders.
Highlighting the complementary strengths of the two countries, Goyal said Israel’s expertise in innovation and R&D combined with India’s manufacturing scale and large markets could lead to significant investment opportunities and joint projects.
He also noted Israel’s $50-billion metro project in Tel Aviv — involving nearly 300 km of underground tunnelling — for which Indian firms have been encouraged to bid. “Israel is very seriously looking at Indian companies for this mega project. India has strong experience, with 23 cities developing metro systems,” he said.
Trade between the two nations declined sharply in 2024-25, with India’s exports dropping 52% to USD 2.14 billion and imports falling 26.2% to USD 1.48 billion. Despite this dip, India remains Israel’s second-largest trading partner in Asia, with strong collaboration in high-tech products, machinery, communications systems, medical equipment, and traditional sectors such as diamonds and petroleum.
