India and Israel have taken a decisive step toward reinforcing their economic collaboration by signing the Terms of Reference (ToR) to launch negotiations for a Free Trade Agreement (FTA). The signing took place in Tel Aviv, signalling the two nations’ intent to expand their partnership beyond security and technology into comprehensive trade cooperation.

The ceremony was attended by India’s Minister of Commerce and Industry, Piyush Goyal, and Israel’s Minister of Economy and Industry, Nir Barkat.

Both leaders underscored the importance of this milestone, noting that the agreement will pave the way for deeper commercial, technological, and investment linkages between the two democracies.

Minister Goyal announced that the negotiations would aim to establish a balanced and equitable FTA, designed to simplify business operations and create a stable policy environment.

He said the agreement is expected to remove barriers to trade, increase predictability, and promote a long-term economic partnership beneficial to both sides.

Both countries are optimistic that the FTA will substantially boost the flow of goods, services, and capital. For India, this agreement opens new opportunities to access Israel’s advanced technological sectors, while Israel stands to benefit from India’s vast consumer market and competitive manufacturing base.

Highlighting the complementarity between the two economies, Minister Goyal observed that India and Israel do not compete directly in most sectors but instead complement one another’s strengths.

He stated that such synergy could act as a “force multiplier” for economic growth, enabling the rapid scaling of trade and innovation-driven investment.

India’s growing strength in innovation formed a key theme of Goyal’s address. He cited India’s robust intellectual property regime and its status as the world’s third-largest start-up ecosystem as major draws for global investors.

He noted that India’s focus on emerging deep-tech areas like artificial intelligence, quantum computing, and machine learning aligns naturally with Israel’s reputation as a global innovation hub.

The minister also emphasised India’s expanding data infrastructure and digital economy as additional pillars supporting this partnership. By combining India’s scale and digital capabilities with Israel’s technological expertise, both countries aim to accelerate innovation-led growth and co-development in critical sectors.

Israel’s Minister of Economy and Industry, Nir Barkat, echoed these sentiments, describing the FTA as a strategic step that reflects the growing trust and cooperation between the two nations.

With longstanding ties in defence, agriculture, and technology, both countries view economic liberalisation through the FTA as the next logical stage in their evolving relationship.

The forthcoming negotiations will cover a wide range of areas including goods, services, investment protection, and digital trade. The goal is to finalise a fair and mutually beneficial agreement that expands trade volumes while ensuring market access for key sectors of interest to both sides.

The launch of FTA talks comes at a time when global trade dynamics are shifting towards greater regional and strategic partnerships. For India, this move aligns with its broader goal of deepening trade ties with technologically advanced economies; for Israel, it opens avenues into one of the fastest-growing major markets in the world.

Both nations hope the FTA will not only enhance bilateral trade but also act as a catalyst for collaboration in high-value sectors such as semiconductor development, renewable energy, cybersecurity, and agricultural technology.

Based On ANI Report