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India and Israel Close to Finalizing the First Phase of Free Trade Agreement (FTA).

International | Dated: 24 Nov 2025

Commerce Minister Piyush Goyal announced that India and Israel are close to completing the first phase of their Free Trade Agreement (FTA), with discussions for a full, comprehensive deal to follow. The first phase focuses on reducing tariffs on key agricultural and industrial goods, improving market access for Indian IT services, and establishing streamlined customs procedures. This expedited progress highlights the strengthening strategic and economic ties, particularly in high-tech, defence, and water management sectors. The completion of the first phase is expected to be a precursor to the full CEPA (Comprehensive Economic Partnership Agreement) negotiations, aiming to significantly boost bilateral trade.

🎯 Key Highlights:

  • The first phase of the FTA focuses on reducing tariffs on key goods.
  • The deal aims to improve market access for Indian IT services.
  • The finalization of the first phase will be a precursor to the full CEPA negotiations.

💡 Other Important Facts:

  • The FTA is expected to be strategically important given India's involvement in the I2U2 group.
  • Negotiations included sessions on mutual recognition of standards and testing bodies.
  • The agreement aims to diversify India's trade relationships beyond its traditional partners.

📚 Test Your Knowledge:

The first phase of the India-Israel FTA primarily focuses on which aspect?

Correct Answer: Reduction of Tariffs on Goods

🚀 Quick Recap:

About India-Israel Ties

  • (i) Key Sectors: Defence, Technology (high-tech), and Agriculture. (ii) Next Step: Full CEPA (Comprehensive Economic Partnership Agreement) negotiations.
  • (iii) Bilateral Trade: Expected to cross $15 billion after the FTA. (iv) Indian Focus: Securing advanced technology and water management solutions.