SDG 8: Decent Work and Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Ministry of Commerce & Industry
Union Minister of Commerce & Industry, Shri Piyush Goyal, concluded a significant three-day visit to Israel (November 20–22, 2025) aimed at bolstering the India–Israel strategic and economic partnership. A pivotal outcome of the visit was the signing of the Terms of Reference (ToR) for the India–Israel Free Trade Agreement (FTA) with Israel’s Minister of Economy and Industry, Mr. Nir Barkat. This agreement marks the official commencement of structured negotiations intended to achieve a balanced and mutually beneficial trade pact.
The visit also featured the India–Israel Business Forum and CEOs Forum, facilitating over 250 B2B meetings. Shri Goyal highlighted the immense potential for collaboration in high-tech sectors, including agritech, water tech, AI, quantum computing, and cybersecurity. Discussions with Israel’s Finance Minister also explored opportunities for Indian companies in infrastructure and mining, as well as pathways for Indian workers in Israel.
Policy Relevance: The formal launch of FTA negotiations signals a strategic shift to institutionalize economic cooperation beyond defence. For India, this pact promises access to critical Israeli technologies in agriculture and water management, which are vital for domestic developmental goals, while offering Israeli firms access to India’s massive market and manufacturing base.
What are “Terms of Reference” (ToR) in trade negotiations?→ Terms of Reference (ToR) is a foundational document that establishes the scope, objectives, and procedural framework for trade negotiations. In the context of an FTA, the ToR delineates the specific areas to be covered—such as goods, services, investment, and intellectual property—and sets the timeline and rules of engagement, ensuring that both parties have a shared roadmap before detailed bargaining begins.
Relevant Question for Policy Stakeholders: How will the Ministry ensures that the upcoming FTA negotiations prioritize technology transfer in critical sectors like semiconductor manufacturing and desalination to support India’s ‘Atmanirbhar Bharat’ mission?
Follow the full news here: India and Israel Formalize Terms of Reference for Free Trade Agreement