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BUSINESS & TRADE NOVEMBER 28, 2025 | The Indian Eye 32

INDIA–ISRAEL RELATIONS

Innovation Meets Scale as Free

Trade Talks Kick Off in Tel Aviv

A new push on technology, manufacturing, and investment is redefining India–Israel economic

ties as the two nations begin formal negotiations for a long-pending Free Trade Agreement

OUR BUREAU
Tel Aviv

ndia and Israel have opened a fresh chapter in
their economic relationship, coupling Israel’s
Iinnovation ecosystem with India’s expanding
manufacturing and industrial base in a way that
leaders on both sides describe as mutually transfor-
mative. The renewed momentum came as Union
Commerce and Industry Minister Piyush Goyal
and Israel’s Minister of Economy and Industry Nir
Barkat met in Tel Aviv on Thursday, signing the
Terms of Reference for negotiations on a long-de-
layed India–Israel Free Trade Agreement (FTA).
Calling the partnership a “win-win” for both
nations, Barkat was emphatic about the strategic
complementarity driving this engagement. “Isra-
el’s innovation and India’s scale make for a great
combination. India is scaling so rapidly, we are
amazed. ‘Make in India’ is one of the smartest con-
cepts and is relevant for many Israeli companies,”
he said. His comments reflect growing confidence
within Israel’s industry that India’s manufacturing
push and market potential can anchor a deeper Union Minister Piyush Goyal and Israel Minister of Economy and Industry, Nir Barkat sign a TOR for a trade agreement in Tel
long-term partnership. Aviv-Yafo on Thursday (@PiyushGoyalX/ANI Photo)
For India, the FTA negotiation comes at a
time when New Delhi is fast-tracking multiple emphasized the government’s push for co-creation shaping the economic agenda. Both governments
trade pacts to integrate more deeply into global models: “I spoke about the complementarities be- see value in diversifying supply chains, reducing
supply chains. With Israel, the focus is squarely tween India’s industrial ecosystem and Israel’s in- dependency on single-source suppliers, and build-
on high-value sectors: advanced manufacturing, novation ecosystem and invited Israeli companies ing trusted technology partnerships. As the global
homeland security, defense technologies, water and start-ups to co-develop, co-design, and co-pro- economy becomes more fragmented, mid-sized
management, precision agriculture, and frontier duce in India.” powers like India and Israel are increasingly look-
technologies like AI, semiconductors and cyber-se- A potential FTA, officials say, aims to reduce ing to each other to hedge risk and expand their
curity — areas where Israel is a global leader. tariff barriers, improve market access, simplify reach.
Goyal, speaking at the India–Israel Business regulatory processes and encourage technology Israel’s leadership has repeatedly underlined
Summit in Tel Aviv, stressed these complementar- transfer. While earlier rounds of negotiations had the importance of engaging India on everything
ities and pointed to India’s new economic trajec- stalled, the new Terms of Reference suggest both from water desalination to digital governance. In-
tory. “India and Israel share similar thinking. We sides are now treating the agreement as a strategic dia, in turn, sees Israeli technologies as crucial to
are grateful for this friendship. India continues to priority rather than a routine trade negotiation. meeting its climate, agricultural and security chal-
rise amidst challenges,” he said, presenting what Economic engagement between the two coun- lenges. The defense relationship — once the cen-
he called the “10 Ds” that define India’s growth tries has steadily expanded in recent years, though terpiece of bilateral ties — is now evolving into a
story — from Demography and Demand to Dig- it remains below potential. Bilateral trade stands broader industrial partnership, with growing inter-
italization and Decisiveness. According to Goyal, at roughly USD 10 billion, dominated by diamonds, est in co-production and joint R&D.
these fundamentals make India “a compelling in- pharmaceuticals, chemicals, defense components If the FTA progresses as planned, it could
vestment destination” and create “huge opportu- and emerging tech. A trade pact could diversify become one of India’s most innovation-focused
nities on both sides.” this portfolio significantly, especially in electronics trade agreements. For now, Israel’s enthusiasm for
The Business Summit — themed Gateway to manufacturing, food processing, medical devices, India’s scale and India’s appetite for Israeli tech-
Growth — drew a sizeable Indian business delega- renewable energy and agricultural technologies — nology signal a renewed economic partnership —
tion, a turnout that Goyal said illustrated the scale all critical to India’s next phase of industrial devel- one driven not by sentiment but by strategy, com-
of opportunity. Inviting Israeli start-ups and tech opment. petitiveness, and the logic of a rapidly changing
companies to deepen their presence in India, he Beyond trade, geopolitical alignment is also global economy.

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