Chasing early wins: India and Israel may roll out proposed FTA in two phases
Piyush Goyal said both sides want to avoid delays by pushing an initial tranche first.
- Nov 23, 2025,
- Updated Nov 23, 2025 1:14 PM IST
India and Israel are weighing a two-phase rollout of their proposed free trade agreement (FTA) to deliver early gains to businesses on both sides, Commerce and Industry Minister Piyush Goyal said on Sunday during his visit to Tel Aviv. The announcement comes days after the two countries signed the terms of reference (ToR) to formally begin negotiations on the pact.
Goyal said both sides want to avoid delays by pushing an initial tranche first. "We are considering doing this in two tranches. A decision will be taken when the talks begin. Both ministers are keen to finalise the first phase early so that the trade community benefits sooner," he said.
The ToR covers market access for goods through tariff and non-tariff barrier removal, investment facilitation, simpler customs procedures, cooperation on innovation and technology transfer, and easing rules for services trade.
The minister, who is leading a 60-member business delegation, said he and Israeli Economy and Industry Minister Nir Barkat agreed that negotiators should focus first on areas where quick agreement is possible.
Goyal said they would not touch "sensitive issues" at the outset. Instead, the initial phase may centre on building joint R&D and innovation partnerships and creating new investment channels. "It is quite possible that we may come out with the first phase on an FTA, so that we can kickstart the benefits faster," he added.
Goyal also discussed a major infrastructure opportunity in Israel - a $50 billion metro project in Tel Aviv involving 300 km of underground tunnelling. He said Israel had issued pre-qualification documents and is keen for Indian firms to participate.
"We have several players, both in the public and private sectors, who have done massive works. We have 23 cities which are setting up metros in India," he said, adding that Israel would "very seriously" like Indian companies to join the bidding.
Bilateral trade between the two nations fell sharply in 2024-25. India’s exports to Israel dropped 52% to $2.14 billion, while imports fell 26.2% to $1.48 billion, taking total trade to $3.62 billion.
India remains Israel's second-largest trading partner in Asia, with commerce largely concentrated in diamonds, petroleum products and chemicals, though recent years have seen growth in high-tech equipment, communications systems and medical devices.
India's exports to Israel span pearls and precious stones, automotive diesel, chemicals, machinery, plastics, textiles, base metals, transport equipment and agricultural products. Imports include pearls and precious stones, fertiliser and mineral products, petroleum oils, machinery, transport equipment and defence-sector supplies.
(With inputs from PTI)
India and Israel are weighing a two-phase rollout of their proposed free trade agreement (FTA) to deliver early gains to businesses on both sides, Commerce and Industry Minister Piyush Goyal said on Sunday during his visit to Tel Aviv. The announcement comes days after the two countries signed the terms of reference (ToR) to formally begin negotiations on the pact.
Goyal said both sides want to avoid delays by pushing an initial tranche first. "We are considering doing this in two tranches. A decision will be taken when the talks begin. Both ministers are keen to finalise the first phase early so that the trade community benefits sooner," he said.
The ToR covers market access for goods through tariff and non-tariff barrier removal, investment facilitation, simpler customs procedures, cooperation on innovation and technology transfer, and easing rules for services trade.
The minister, who is leading a 60-member business delegation, said he and Israeli Economy and Industry Minister Nir Barkat agreed that negotiators should focus first on areas where quick agreement is possible.
Goyal said they would not touch "sensitive issues" at the outset. Instead, the initial phase may centre on building joint R&D and innovation partnerships and creating new investment channels. "It is quite possible that we may come out with the first phase on an FTA, so that we can kickstart the benefits faster," he added.
Goyal also discussed a major infrastructure opportunity in Israel - a $50 billion metro project in Tel Aviv involving 300 km of underground tunnelling. He said Israel had issued pre-qualification documents and is keen for Indian firms to participate.
"We have several players, both in the public and private sectors, who have done massive works. We have 23 cities which are setting up metros in India," he said, adding that Israel would "very seriously" like Indian companies to join the bidding.
Bilateral trade between the two nations fell sharply in 2024-25. India’s exports to Israel dropped 52% to $2.14 billion, while imports fell 26.2% to $1.48 billion, taking total trade to $3.62 billion.
India remains Israel's second-largest trading partner in Asia, with commerce largely concentrated in diamonds, petroleum products and chemicals, though recent years have seen growth in high-tech equipment, communications systems and medical devices.
India's exports to Israel span pearls and precious stones, automotive diesel, chemicals, machinery, plastics, textiles, base metals, transport equipment and agricultural products. Imports include pearls and precious stones, fertiliser and mineral products, petroleum oils, machinery, transport equipment and defence-sector supplies.
(With inputs from PTI)