India & Israel have decided to enter into negotiations for FTA: Comm minister Piyush Goyal calls it ‘historic’

India and Israel on Thursday signed the Terms of Reference for negotiations for a Free Trade Agreement as the Union Minister of Commerce & Industry Piyush Goyal announced that the two countries have decided to enter into negotiations for FTA. He underlined that the two nations have “unlimited possibilities and potential” to expand economic engagement.

India offers vast and promising investment opportunities for Israeli businesses, and industries on both sides can significantly deepen cooperation in sectors such as infrastructure development, manufacturing and artificial intelligence, Goyal said while addressing the India-Israel Business Summit in Tel Aviv alongside Israel’s Minister of Economy Nir Barkat.

“Soon after having executed a bilateral invetsment treaty, collectively the treaty and the free trade agreement will open doors to greater market access, flow of capital, investments and trade, both in goods and services, remove obstacles to doing business, provide clarity, predictability and stability to our economic engagement,” the commerce minister said.

Goyal highlighted that collaboration between India and Israel can be strengthened in a wide range of sectors, including fintech, agritech, machine learning, quantum computing, pharmaceuticals, space and defence.

“India offers an investor-friendly and predictable atmosphere to do business. It offers huge opportunities for businesses of both sides,” he said.

Speaking about ties between the two countries, Goyal said the India-Israel partnership is grounded in “traditions, culture, trust and friendship,” quoting Prime Minister Modi’s remarks on the deep ties between the two countries.Recalling that PM Modi became the first Indian prime minister to visit Israel in 2017, Goyal said he may be the first Commerce and Industry Minister leading a large business delegation to Israel.”We are already planning a bright future together. If Israel and India work together, the sky is the limit,” he said.

Commerce and Industry minister Goyal is leading a 60-member business delegation to Israel. Goyal will travel to Jerusalem on Friday as part of his ongoing visit to further strengthen bilateral economic ties.

India’s Ten ‘Ds’

Goyal also spoke at length about the ten “Ds” that make India one of the world’s most attractive destinations for investors: democracy, demographic dividend, decarbonisation digitalisation, development, demand, diversity, decisive leadership, dependability and determination of 1.4 billion young Indians.

He added that India continues to perform strongly despite global volatility, trade uncertainties and challenges to multilateralism in the present era.

“Many estimates of India’s growth came out. The IMF first projected 6.7%, then revised it downwards to 6.4%. Some felt it would be close to 6%. But even then, India would remain the fastest-growing major economy,” he said.

He further mentioned that India’s first-quarter growth stood at 7.8%, and second-quarter numbers, expected soon, would be around 7%.

“At the end of the year, by March 31, 2026, we will be growing at nearly 7%, well above the world average,” he added.

In his speech, the commerce ministry also emphasised on India’s structural reforms, including the nationwide Goods and Services Tax (GST) and unified electricity grid.

“India derives strength from unity. We are proud of our history, culture and traditions. After centuries of foreign rule–from the Mughals to the British–Prime Minister Narendra Modi is focused on shedding the colonial mindset and steering India towards becoming a developed nation by 2047,” he said.

(With inputs from agencies)