India-Israel FTA Talks Gain Momentum
- By Thetripurapost Desk, Jerusalem
- Feb 26, 2026
- 632
Today marks the culmination of Prime Minister Narendra Modi’s official visit to Israel, underscoring a significant phase in bilateral relations between the two nations.
On the second day of his visit, Prime Minister Modi paid homage at Yad Vashem in Jerusalem, commemorating the six million Jews who perished under the Nazi regime led by Adolf Hitler. The solemn tribute highlighted India’s enduring commitment to remembrance and human dignity.
Subsequently, Modi held talks with Israeli President Isaac Herzog, who lauded India’s accelerating economic growth and its expanding global influence. The Prime Minister extended a formal invitation to President Herzog to visit India, further reinforcing diplomatic goodwill.
Following comprehensive bilateral discussions, Modi and Israeli Prime Minister Benjamin Netanyahu addressed a joint press conference. A landmark announcement confirmed that India’s Unified Payments Interface (UPI) will soon be operational in Israel, marking a new chapter in fintech cooperation. Modi also affirmed that negotiations toward a Free Trade Agreement (FTA) are progressing expeditiously and will be concluded in the near future.
Upon his arrival in Israel, Modi was received at the airport by Netanyahu and his wife, Sara. In a historic moment, he addressed the Israeli Parliament, the Knesset, becoming the first Indian Prime Minister to do so. He was conferred the Speaker of the Knesset Medal — the Parliament’s highest honour — which he dedicated to the 1.4 billion citizens of India and to the enduring India-Israel partnership.
Key Highlights from the Address
Prime Minister Modi emphasised that India-Israel relations, anchored in shared democratic values, mutual trust, and human dignity, have now been elevated to a Strategic Partnership reflective of the aspirations of both nations.
He underscored the imperative to expand trade and investment, expedite the FTA, and deepen collaboration in frontier sectors such as artificial intelligence, quantum technologies, and critical minerals. The integration of UPI into Israel’s payment ecosystem was cited as a tangible outcome of this cooperation.
In defence and strategic sectors, Modi reaffirmed the robust partnership built on joint development, production, and technology transfer, with expanding collaboration in civil nuclear energy and space exploration.
Agricultural cooperation, already regarded as a model of success, will be further strengthened. The number of Centres of Excellence in India, established with Israeli assistance, will increase to 100, alongside the creation of “Villages of Excellence” aimed at disseminating advanced agricultural practices and enhancing farmers’ productivity and income.
The Prime Minister also stressed the importance of strengthening people-to-people ties. An India-Israel Academic Forum will be established to connect youth, researchers, and innovators, while cooperation in commerce and services will be broadened.
On global issues, both nations reaffirmed their commitment to advancing initiatives such as the IMEC Corridor and the I2U2 framework. They unequivocally reiterated that terrorism has no place in the international order and emphasised the necessity of dialogue and peaceful resolution to ensure stability in West Asia.
Progress on the Free Trade Agreement
The first round of negotiations on the India-Israel Free Trade Agreement concluded in New Delhi from February 23 to 26, 2026. Earlier, in November 2025, both sides had signed the Terms of Reference outlining the negotiation framework.
With bilateral goods trade reaching US$3.62 billion (approximately ₹31,000 crore) in the fiscal year 2024–25, the proposed FTA is expected to significantly enhance economic engagement, provide greater predictability for businesses, and particularly benefit small and medium-sized enterprises.
Negotiations have encompassed a comprehensive range of issues, including trade in goods and services, rules of origin, sanitary and phytosanitary standards, technical barriers to trade, customs procedures, trade facilitation measures, and intellectual property rights — reflecting the depth and breadth of the evolving economic partnership between the two nations.