India–Israel FTA soon? Agritech, medical devices, machinery, specialty chemicals to see a boost. Details here

India and Israel are set to deepen their economic partnership through a proposed Free Trade Agreement (FTA) that is expected to significantly expand bilateral trade in agriculture technology, medical devices, industrial machinery and speciality chemicals.

The agreement aims to reduce tariffs, ease regulatory barriers and promote joint manufacturing, aligning with India’s “Make in India” and innovation-driven growth strategy. According to officials, the FTA could unlock new opportunities for technology transfer and investment flows between the two countries.

Agriculture Technology: Driving Climate-Resilient Growth

In the agriculture sector, India is likely to see increased imports of advanced Israeli drip irrigation systems, greenhouse technologies, precision farming sensors and post-harvest management equipment. Internet of Things (IoT) & AI-driven precision, N-Drip gravity systems and solar-powered fertigation will be introduced.

Israeli firms such as Netafim have already established a strong presence in India’s micro-irrigation market, and tariff reductions under the FTA could further expand access to water-efficient farming solutions. At present, Netafim focuses on deploying advanced digital irrigation systems with cloud technology to allow farmers to manage irrigation from mobile devices.

This is expected to support productivity gains, improve water-use efficiency and promote climate-resilient agriculture across Indian states.

Medical Devices and Digital Health Expansion

The healthcare and medical devices segment is another major focus area. High-end diagnostic machines, AI-enabled imaging tools, telemedicine platforms and critical care equipment from Israeli innovators could enter the Indian market at more competitive prices.

Companies like Given Imaging, known for breakthrough diagnostic technologies, reflect Israel’s strength in medical innovation. Will lower their color imaging technology. 

Lower duties and streamlined regulatory approvals may also encourage joint ventures in India’s expanding medical device parks and strengthen domestic manufacturing capacity.

Machinery, Water Technology and Chemical Trade

Industrial machinery and water management systems also form an integral part of the proposed FTA. Israel’s expertise in desalination, wastewater recycling and advanced manufacturing equipment could support India’s infrastructure modernisation and industrial automation goals.

In chemicals, speciality inputs, agrochemicals and high-value pharmaceutical intermediates are expected to see trade growth, strengthening supply chain integration and boosting competitiveness in export-oriented sectors.