(MENAFN- Live Mint) Union Minister Piyush Goyal on Thursday said that Israel and India have decided to enter into negotiations for a Free Trade Agreement (FTA) and the two countries formally signed the Terms of Reference (ToR).

The ToR was signed by Goyal and Israeli Economy and Industry Minister Nir Barkat.

Goyal told reporters that they will soon finalise the dates for starting the negotiations, adding, services such as IT, tourism and movement of skilled professionals will get a boost from the proposed pact.

He added that that the proposed agreement will open the doors to greater market access, flow of capital, investments and trade both in goods and services.

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"It will also remove obstacles to doing business, provide clarity, predictability and stability to our economic engagement. Clearly, Israel and India are two strategic partners with deep-rooted friendship and a mutual respect for each other and are destined to bigger achievements and greater friendship,” Piyush Goyal said.

The minister noted that the two countries which really don't compete with each other, are ambitious to finalize a win, win, fair, equitable and balanced free trade agreement between our two democracies.

“We have already agreed that whatever will be the sensitivities of Israel, India will keep out that from the agreement and similarly, whatever is sensitive for India, Israel will keep that”

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When asked about the boost the FTA will give to the bilateral trade, Israeli Minister Nir Barkat. indicated a 10-fold increase.

"India is one of the best friends that Israel has around the world. Israel has technologies to boost productivity, and it can share that with Indi," reported PTI quoting Barkat

He added that Isreali companies understand the potential of India and "We have to make the ecosystem simple".

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During April 2000 and June 2025, India received USD 337.77 million foreign direct investment (FDI) from Israel

During 2024-25, India's exports to Israel dipped 52 per cent to USD 2.14 billion from USD 4.52 billion in 2023-24. Imports, too, fell 26.2 per cent to USD 1.48 billion last fiscal year. The bilateral trade stood at USD 3.62 billion, reported PTI.

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