India and Israel took a major step toward strengthening their economic partnership as both nations signed the Terms of Reference (ToR) on November 20, 2025, officially launching negotiations for a comprehensive Free Trade Agreement (FTA). The document was signed in Tel Aviv by India’s Commerce and Industry Minister Piyush Goyal and Israel’s Economy and Industry Minister Nir Barkat.
The ToR establishes a structured framework for future negotiations, covering trade in goods and services, investment promotion, regulatory cooperation, and technology-driven partnerships. The proposed FTA aims to expand bilateral trade, leverage each country’s complementary strengths, and boost collaboration in sectors such as agritech, defence, pharmaceuticals, digital trade, water technology, and R&D.
This development aligns with India’s broader strategy of strengthening global supply chains and expanding its FTA network. It also reflects the growing strategic synergy between India and Israel, particularly in innovation and high-tech industries.
