The first round of negotiations for the India-Israel Free Trade Agreement (FTA) has commenced in New Delhi and is scheduled to take place until February 26, 2026. The Terms of Reference (ToR) was signed in November 2025 establishing a structured framework for discussions on identified areas to enhance trade, and economic cooperation.

Total merchandise trade between the two countries stood at $3.62 billion in FY24-25. They share complementarities across several sectors, and the FTA will be a catalyst to further enhance the bilateral trade by providing certainty and predictability to businesses, including micro, small, and medium enterprises (MSMEs), the Ministry of Commerce and Industry said in a press release.

India and Israel have begun the first round of FTA negotiations in New Delhi through February 26, 2026, following the November 2025 ToR signing.
With bilateral trade at $3.62 billion in FY25, talks cover goods, services, rules, SPS, TBT and IPR.
Officials highlighted opportunities in technology and innovation, aiming for a balanced pact to boost trade, supply chains and economic cooperation.

During this round, technical experts from both sides will engage in sessions covering various aspects of FTA such as trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedure and trade facilitation, intellectual property rights, among others.

During the opening session, Indian Commerce Secretary, Rajesh Agrawal, underscored that the FTA negotiations had begun at an opportune moment of Prime Minister Narendra Modi’s visit to Israel from February 25-26, 2026.

Agrawal underscored the significant opportunities available to both sides in sectors such as innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services. He emphasised that the FTA would enable both countries to harness and fully leverage these opportunities.

Chief Negotiator of India, Ajay Bhadoo, Additional Secretary, Department of Commerce, reiterated the significance of this engagement for the two countries and encouraged both sides to work on a balanced agreement to build a forward-looking framework for an evolving partnership.

Chief Negotiator of Israel for the FTA, Yifat Alon Perel, Senior Director Trade Policy and Agreements and Deputy Trade Commissioner, Foreign Trade Administration, Ministry of Economy and Industry, Israel, expressed that the two countries shared a close relationship, and that the FTA has the potential to strengthen supply chains, enhance cooperation and open new markets for both countries.

This engagement highlighted the strategic importance of India-Israel bilateral relationship and reinforces India’s commitment to strengthen economic partnerships in line with national priorities and global aspirations. Both sides are working towards concluding a balanced and mutually beneficial agreement, added the release.

Fibre2Fashion News Desk (SG)

High bank lending rates, unstable law and order marked by extortion, energy uncertainty, lack of coordination in revenue management and absence of policy continuity in industrial regulations are affecting the overall trade environment and eroding confidence in both local and foreign investment as well as business operations, according to the Dhaka Chamber of Commerce & Industry (DCCI).

DCCI president Taskeen Ahmed told a press conference that the unchanged policy rate has forced businesses to borrow from banks at 16-17 per cent interest, creating mounting pressure.

High lending rates, unstable law and order marked by extortion, energy uncertainty, lack of coordination in revenue management and absence of policy continuity in industrial regulations are affecting the trade environment and eroding confidence in investment and business operations, trade body DCCI has said.
Rising production and distribution costs are also fuelling inflationary pressures, it noted.

“The high volume of non-performing loans (NPLs) and the reduction of the loan classification period from nine months to three months have created an undesirable situation in the financial sector, which has led to instability in the industrial sector,” he was cited as saying in a DCCI release.

“Industrial production is being hampered due to inadequate gas supply and the recent increase in gas prices for new industries and captive power plants by Tk 40 and Tk 42 per unit respectively,” he said, mentioning that both domestic demand and export targets are being missed as a result.

He also pointed to structural weaknesses in the revenue management system, saying the lack of automation leads to harassment of compliant taxpayers, while many remain outside the tax net, depriving the government of revenue and slowing collection growth.

Taskeen said delays in land acquisition, high land prices, a 41-per cent average increase in service charges by the Chattogram Port Authority and underutilisation of inland waterways have significantly raised the cost of doing business. “Rising production and distribution costs are also fuelling inflationary pressures,” he added.

As the recently-signed trade agreement with the United States does not guarantee duty-free access for the readymade garment sector, Taskeen called on the government to renegotiate the terms with the US administration.

Fibre2Fashion News Desk (DS)