NEW DELHI / TEL AVIV (Rajeev Sharma) — Marking a transformative chapter in bilateral relations, India and Israel successfully concluded the first round of negotiations for a comprehensive Free Trade Agreement (FTA) on Thursday, February 26, 2026. The four-day session in New Delhi follows the signing of the Terms of Reference (ToR) in November 2025, providing a structured roadmap to dismantle trade barriers and deepen economic integration between the two strategic partners.
Coinciding with the conclusion of the talks, Prime Minister Narendra Modi, currently on a high-profile state visit to Israel, issued a joint statement with Prime Minister Benjamin Netanyahu. The leaders welcomed the launch of the “India-Israel Financial Dialogue,” a new mechanism designed to bolster financial stability and cross-border cooperation. A key highlight of this dialogue is the strategic partnership in the financial-cyber domain, where both nations will share intelligence and conduct joint simulations via their respective Financial Computer Security Incident Response Teams to protect their financial ecosystems.
Prime Minister Netanyahu specifically lauded India’s fintech achievements, citing the Unified Payments Interface (UPI) as a global benchmark for real-time transactions. In a significant move toward financial interoperability, both sides agreed to explore linking UPI with Israel’s fast payment system. This was further solidified by a Memorandum of Understanding (MoU) between NPCI International and Israel’s MASAV to examine technical linkages for seamless cross-border payments.
The leaders also emphasised the importance of the India-Israel Bilateral Investment Agreement, signed in September 2025, which provides a transparent framework for investor protection and independent dispute resolution. Prime Minister Modi encouraged greater Indian participation in Israel’s massive infrastructure pipeline, including upcoming projects in metro rail, desalination, and waste-water treatment.
To streamline commercial interactions, the Indian Council of Arbitration (ICA) and the Israeli Institute of Commercial Arbitration (IICA) signed an MoU on arbitration, aimed at facilitating smoother dispute resolutions. With the first round of FTA negotiations now complete, both Prime Ministers have tasked their respective teams to expedite the process to ensure an early signing of the final agreement, signaling a shared commitment to unlocking the full potential of the India-Israel strategic partnership.
