India-Israel FTA Expected This Year as Modi Visits to Deepen Ties

Israeli Ambassador Reuven Azar stated that India and Israel are moving decisively towards finalizing a Free Trade Agreement, potentially within the year. Prime Minister Narendra Modi's upcoming visit will focus on deepening the defence partnership by updating security agreements to tackle evolving threats. The visit will also advance cooperation in critical future technologies like artificial intelligence, quantum computing, and cybersecurity. The trip marks Modi's second visit to Israel, reinforcing a strategic partnership built on trust and shared innovation goals.

Key Points: India-Israel FTA May Be Finalized This Year, Says Envoy

  • FTA likely this year
  • Defence pacts to be updated
  • Focus on AI, quantum, cyber cooperation
  • Modi to address Israeli Knesset
  • Bilateral ties are strategic partnership
7 min read

"India, Israel may sign FTA by this year," Israeli envoy to India

Israeli Ambassador says Free Trade Agreement with India could be signed this year as PM Modi visits to upgrade defence pacts and boost tech cooperation.

"India and Israel are not just partners. We are true friends shaping the future together. - Reuven Azar"

New Delhi, February 23

Israeli Ambassador Reuven Azar on Monday said that Israel is excited to welcome Prime Minister Narendra Modi this week, noting that the two nations will move forward decisively during his visit.

Further, he said that both India and Israel were moving towards a Free Trade Agreement, and it could get finalised this year.

During PM Modi's visit, India and Israel will deepen their defence partnership by updating security agreements, the Israeli diplomat said.

In a video shared on X, Azar said, "Namaste. This is an exciting moment for India-Israel relations. We are looking forward to welcoming Prime Minister Narendra Modi to Israel. Now, when India and Israel come together, it's never just a meeting. It's a partnership built on trust, powered by innovation, and guided by a clear understanding of the challenges of our time."

"During this visit, we will move forward decisively. First, on security and defence. India and Israel have worked closely for years and we are proud of this strong cooperation. But the world is changing fast and so are the threats. In order to meet them, we will deepen our defence relationship by updating our security agreements. This will allow us to engage in more sensitive projects and develop together a logical solution," Azhar said.

"Second, our economic partnership is gaining real momentum. We signed a bilateral investment treaty and we are moving forward to sign a free trade agreement hopefully this year," he said.

Azar said that Israel would like to see Indian infrastructure companies there.

"Third, the visit will be crucial in forging partnerships in areas like AI, quantum and cyber. And last, Israel would like to see Indian infrastructure companies coming to Israel. We want to streamline our financial cooperation and promote innovation. But other crucial fields like transportation, water, agriculture and academic cooperation are going to be advanced during this visit as well. India and Israel are not just partners. We are true friends shaping the future together," he said.

This will be the second visit of Prime Minister Narendra Modi to Israel in nine years. India-Israel bilateral relationship was elevated to 'Strategic Partnership' during the visit of Prime Minister Modi on July 4-6, 2017.

On Sunday, PM Modi acknowledged Israeli Prime Minister Benjamin Netanyahu's personal tribute during a cabinet meeting in Jerusalem, where the Israeli PM described PM Modi as a "dear friend" and hailed his upcoming visit as a milestone in bilateral ties.

In his response to a video posted by Netanyahu on X, PM Modi stated, "Thank you, my friend, Prime Minister Netanyahu. I fully agree with you on the bond between India and Israel as well as the diverse nature of our bilateral relations. India deeply values the enduring friendship with Israel, built on trust, innovation and a shared commitment to peace and progress. Looking forward to our discussions during my upcoming Israel visit."

Netanyahu had shared a video from the cabinet meeting on X. In his remarks to his cabinet, Netanyahu termed PM Modi's arrival to the country as a historic moment, underscoring the strength of the India-Israel alliance.

Elaborating on PM Modi's engagements in Israel, Netanyahu said, "On Wednesday, Indian Prime Minister Narendra Modi will arrive. He will address the Knesset, and I am sure you will all be there. We will also hold an innovation event in Jerusalem and visit Yad Vashem together. I will also note something else, a special collaboration. We will advance cooperation in high-tech, AI, and quantum. I say AI and quantum not because it's not the future, its the present and we want to be among the world's leading nations in this field."

The Israeli PM said that PM Modi is scheduled to deliver a speech at the Knesset and will participate in an innovation event in Jerusalem. The two leaders will also visit Yad Vashem, Israel's official memorial to the victims of the Holocaust.

India and Israel share a robust strategic partnership with strong cooperation across science and technology, innovation, defence and security, trade and investment, agriculture, water and people-to-people.

Prime Minister of Israel Benjamin Netanyahu made a return visit to India on January 14-19, 2018.

On January 11, 2023, PM Modi phoned Netanyahu to congratulate him on his election as Israel's PM for the sixth time.

On August 24, 2023, PM Netanyahu called the Prime Minister to congratulate him on the successful landing of the Chandrayaan 3 on the moon.

On October 10, 2023, PM Netanyahu called the Prime Minister to provide an update on the situation in Israel after the October 7 terror attack.

On June 6, 2024, PM Netanyahu called PM Modi to congratulate him on his election as India's PM for the third consecutive term, and on August 16 to congratulate him on India's Independence Day.

Offering his condolences on the April 22, 2025, Pahalgam terror attack, PM Netanyahu called PM Modi on April 24, 2025.

Following the outbreak of the Israel-Iran conflict on June 13, 2025, PM Netanyahu and PM Modi spoke twice. On October 9, 2025, PM Modi called PM Netanyahu to congratulate him on the progress made under President Trump's Gaza peace plan.

The Prime Ministers also spoke on December 10, 2025, regarding the situation in the region.

The Prime Ministers spoke on January 7, 2026, wherein they exchanged New Year greetings and discussed the regional situation.

Ministerial level visits from Israel to India in year 2025: Agriculture Minister, Tourism Minister, Trade and Economy Minister, Finance Minister and Foreign Minister.

From India to Israel in year 2025: Commerce and Industry Minister, External Affairs Minister, Fisheries and Animal Husbandry Minister.

Science and Technology and Innovation: Robust collaboration includes start ups, joint R&D projects, India-Israel Industrial Innovation Funds (I4F), India-Israel Joint Research calls, Artificial Intelligence and cybersecurity.

Defence cooperation is the important pillar of India-Israel partnership.

In November 2025, during the visit of Defence Secretary of India to Israel, an important 'MoU on Defence cooperation' was signed between Indian and Israel.

During the visit of Union Minister Piyush Goyal in November, 2025, the Term of Reference (ToR) for the launch of Free Trade Agreement (FTA) negotiations between India and Israel was signed. During the visit of Finance Minster of Israel Bezalel Smotrich to India in September 2025, a Bilateral Investment Agreement (BIA) was signed to expand economic cooperation, protect investors and boost cross-border investments, laying foundation for deeper ties and potential FTA discussions.

Longstanding cooperation in agriculture sector is present between the nations. A total of 35 out of 43 approved Centres of Excellence (CoE) are fully operational across different States in India, introducing modern farming, irrigation, and water technologies.

During the visit of Minister of Agriculture of Israel to India in April 2025, the revised Agreement for Cooperation in the field of Agriculture and the sixth 3-year Joint Work Plan (2024-26) were signed.

Over 41,000 strong Indian diaspora in Israel. In November 2023, India and Israel signed a bilateral Framework Agreement to facilitate the temporary, safe and legal employment to Indian workers in Israel. Since then, 20,000 Indians arrived in Israel, both under the Government-to-Government (G2G) route and through private channels.

India welcomed the Comprehensive Plan to End the Gaza Conflict announced by US President Donald Trump on October 13, 2025.

India continues to support efforts towards achieving a just and durable peace in the region. India and Israel are members of the I2U2 group (India, Israel, UAE, USA)- a cooperation framework focusing on food security, renewable energy, trade, and infrastructure projects.

- ANI

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Reader Comments

S
Sarah B
While the economic and defense partnerships are promising, I hope our government remains mindful of the geopolitical complexities. Our foreign policy has always been about strategic autonomy, and that balance is crucial.
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Priya S
More than 20,000 Indian workers in Israel under the new agreement! This is a huge opportunity for skilled labor from states like UP and Bihar. Hope the safety and rights of our people are given top priority.
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Vikram M
The focus on AI, quantum, and cyber partnerships is the real headline here. We need to leapfrog in these critical future technologies, and Israel is a perfect partner. Jai Hind!
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Rohit P
I have a respectful criticism. The article mentions deepening defense ties. While important, we must ensure any sensitive tech transfer or projects truly benefit our 'Make in India' goals and don't create long-term dependency.
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Michael C
The 35 operational Centres of Excellence in agriculture are an unsung success story. If the FTA makes Israeli tech more affordable for our small farmers, it could revolutionize rural economies. A very practical partnership.

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