India and Israel are poised to strengthen their economic ties with the imminent finalisation of a Free Trade Agreement (FTA), as announced by Prime Minister Narendra Modi during his state visit to Jerusalem on 26 February 2026.

Speaking alongside Israeli Prime Minister Benjamin Netanyahu, Modi highlighted the need to inject fresh momentum into bilateral cooperation, describing economic partnership as the engine driving growth, innovation, and shared prosperity.

The leaders recalled the bilateral investment agreement signed last year, which has already bolstered mutual investments. Modi confirmed that negotiators are on track to conclude a mutually beneficial FTA in the near future.

The first round of FTA talks kicked off in New Delhi on Monday, 24 February, and continued through Thursday. Union Commerce Minister Piyush Goyal engaged with an Israeli delegation earlier this week to advance these discussions.

These negotiations follow the signing of the Terms of Reference (ToR) in November 2025 during Goyal's visit to Israel, laying the groundwork for comprehensive trade liberalisation.

In a significant tech-focused announcement, Modi unveiled the 'Critical and Emerging Technology Partnership' between the two nations. This initiative aims to accelerate collaboration in artificial intelligence (AI), quantum technologies, and critical minerals.

Modi emphasised that technology forms the bedrock of the future India-Israel partnership, promising new impetus to joint ventures in these cutting-edge domains.

Digital cooperation received a boost with the agreement to implement India's Unified Payments Interface (UPI) in Israel. Modi hailed this as a landmark step in digital integration, enhancing cross-border transactions.

Both countries pledged to share expertise in digital health innovations, aiming to enhance citizen welfare through best practices and collaborative experiences.

Defence ties, a longstanding pillar of the relationship, are set for expansion. Modi noted decades of reliable cooperation, augmented by memorandums of understanding (MOUs) signed last year.

These MOUs pave the way for joint development, co-production, and technology transfer in defence projects, reflecting deepening strategic alignment.

The partnership will extend to civil nuclear energy and space sectors, underscoring the broadening scope of India-Israel strategic engagement. Modi's two-day state visit, at Netanyahu's invitation, underscores the robust diplomatic rapport amid evolving global geopolitical dynamics.

This multifaceted cooperation aligns with India's push for indigenous manufacturing and technological self-reliance, while leveraging Israel's prowess in defence and innovation.

The announcements signal a new chapter in bilateral relations, potentially unlocking substantial economic and strategic dividends for both nations.

ANI