India and Israel are likely to resume formal negotiations on a comprehensive Free Trade Agreement (FTA) after July, according to sources tracking the development. The next round of in-person talks is expected to be held in Israel, marking a continuation of efforts to deepen bilateral trade and investment ties between the two countries after earlier scheduling delays.

The proposed FTA discussions had initially been planned for an earlier date, but the ongoing conflict in West Asia disrupted timelines, pushing the high-level meeting to later in the summer. Despite the postponement, both sides have maintained engagement through virtual meetings and technical-level discussions, ensuring that momentum on the trade pact has not slowed significantly.

When delegations meet in Israel, the second round of negotiations is expected to focus on key areas such as market access, services, customs procedures, technology cooperation, and intellectual property rights. These discussions aim to streamline trade processes, reduce barriers, and create a more predictable framework for goods, services, and investment flows between the two nations.

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Officials have indicated that the FTA is designed to strengthen economic cooperation by improving access to each other’s markets while supporting innovation-driven sectors. Previous statements from India’s Commerce and Industry Minister Piyush Goyal highlighted that the agreement is intended to enhance capital flows, simplify trade processes, and expand opportunities in both goods and services sectors.

The groundwork for the agreement was advanced in November 2025 when India and Israel signed the Terms of Reference for the FTA, followed by the first formal round of talks in New Delhi in early 2026. Bilateral trade between the two countries stood at around USD 3.62 billion in the previous fiscal year, with diamonds, chemicals, machinery, and petroleum products forming a major share of exchange.

As discussions resume, both sides are expected to build on earlier progress while addressing regulatory and structural issues that could shape long-term trade relations. India remains one of Israel’s key trading partners in Asia, and the proposed agreement is seen as a step toward expanding cooperation in high-tech industries, manufacturing, and services over the coming years.

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