Business

By Pesach Benson • november 20, 2025

Jerusalem, 20 November, 2025 (TPS-IL) — Israel and India officially resumed negotiations on a free trade agreement on Thursday. The move comes as Indian Commerce and Industry Minister Piyush Goyal arrived in Israel with a delegation of around 100 representatives from nearly 70 Indian companies.

“Today we are opening a new page in trade relations between Israel and India,” said Israeli Economy and Industry Minister Nir Barkat. “The official renewal of talks on a free trade agreement is a strategic achievement that strengthens the Israeli economy and creates huge opportunities for our exporters and industrialists. India is an economic powerhouse with tremendous potential for cooperation, and the personal and direct connection that has been built between the countries allows us to promote agreements that will generate growth, innovation, and jobs for Israelis.”

Goyal, on his first visit to Israel, stressed the opportunities of bilateral trade. “This is a match made in heaven that has touched the ground – India for Israel and Israel for India. Together with the investment agreement that has already been signed, we will open the markets together for the movement of goods, services, and investments. We strive for and will reach an agreement that is balanced, broad, and good for both sides.”

India, the world’s fifth-largest economy with a population of roughly 1.4 billion, is a strategic destination for Israeli exports. Exports of Israeli goods and services to India reached about $3.1 billion in 2024, growing 56% over four years despite regional conflicts. A free trade agreement is expected to reduce high tariffs and trade barriers while also addressing digital trade, services, intellectual property, government procurement, and other areas essential for deepening cooperation.

“India offers an investor-friendly and predictable atmosphere to do business. It offers huge opportunities for businesses of both sides,” Goyal said at the India-Israel Business Summit in Tel Aviv. He highlighted the ten “Ds” that make India an attractive investment hub, including democracy, demographic dividend, digitalisation, development, and decisive leadership.

Barkat called India a “great bet” for investment, describing it as “a giant waking up… huge size, huge growth. India is the biggest country, the world’s fifth-largest economy, and soon to be the third-largest. It is a great bet for us. I am telling everyone to hedge on India.” He highlighted opportunities for Indian infrastructure companies in Israel and praised initiatives like the India-Middle East-Europe Economic Corridor (IMEC) for expanding connectivity and trade.

Barkat added, “We went through very challenging two years—a terrible war that exposed the monsters around us… But everyone understands we dismantled them. Despite that, India remains central to Israel’s strategic economic outlook. India is a great bet for us, and we want to be the best partner for India.”

Israel and India signed a bilateral investment agreement in September, which Israeli officials hailed as the first of its kind between India and a Western-oriented member of the Organisation for Economic Co-operation and Development (OECD).