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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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