Kumar Bahukhandi
PM Modi on his visit to Israel. (Photo: ITG)
Indian Prime Minister Narendra Modi has made a major announcement regarding Israel. He said that discussions have begun on a free trade agreement between the two countries and it could be finalized soon.
Prime Minister Narendra Modi is on a visit to Israel, and from there, he made a major announcement further strengthening relations between the two countries. Addressing Israel, PM Modi stated that negotiations on a Free Trade Agreement (FTA) between Israel and India have begun. He further stated that the two countries could finalise it soon.
However, meetings to discuss the FTA had begun just a few days before PM Modi’s announcement. The first round of meetings regarding the Free Trade Agreement between the two countries began on February 23rd. This meeting, which is scheduled to continue until February 26th, is attended by representatives from both countries. It is believed that the two countries may soon reach a consensus on the FTA.
Today is the last day of PM Modi’s visit to Israel. The main objective of this visit is to emphasize making bilateral relations more strategic and multifaceted, and to strengthen sectors such as defense, science and technology, trade, agriculture, and water management.
Not a significant trade deal yet
Although discussions have begun regarding a trade deal between India and Israel, significant trade between the two countries is not yet visible. However, trade is gradually increasing between the two countries. In the fiscal year 2024-25, total trade between the two countries was estimated to be approximately $3.62-3.75 billion, or approximately 340 billion rupees, with India’s exports accounting for approximately $2.14 billion and imports for $1.6 billion.
Discussions were halted in 2021.
Discussions regarding a free trade agreement between India and Israel are not new. These discussions have taken place previously, but were stalled in 2021. However, discussions have resumed once again, and it is being said that they will be completed soon.
It is worth mentioning that trade between India and Israel involves diamonds, chemicals, electronics, agricultural products, technology-based goods, and machinery. However, this trade deal could further accelerate trade between the two countries. Furthermore, India and Israel’s access to several sectors could expand.
