Business
India-Israel FTA: Why Trade Talks Are Gaining Momentum; Who Buys What And Why It Matters
New Delhi: India and Israel are moving closer to a free trade agreement (FTA), with both sides preparing for the next round of discussions in January. Officials close to the development say teams from both countries will meet early in the New Year to take forward negotiations that formally began in November.
At that time, India and Israel signed the Terms of Reference, beginning the official start of talks on the proposed FTA. The focus of the agreement is to expand trade flows and encourage greater investment between the two economies.
According to officials, the January meetings will centre on the overall structure of the India-Israel FTA and the plan that will guide negotiations. Israeli trade representatives are expected to travel to India for these discussions.
The engagement comes as recent trade data points to a slowdown in bilateral commerce. During 2024-25, India’s exports to Israel fell by 52 per cent to $2.14 billion, compared with $4.52 billion in 2023-24. Imports from Israel also declined in the last financial year, dropping 26.2 per cent to $1.48 billion. Taken together, total bilateral trade between the two countries stood at $3.62 billion.
Despite the recent dip, India is Israel’s second-largest trading partner in Asia. Trade between the two countries has traditionally been dominated by diamonds, petroleum products and chemicals. Over the years, the basket has widened, with growing exchanges in electronic machinery, high-tech products, communication systems and medical equipment.
When it comes to exports, India sends a wide range of goods to Israel. These include pearls and precious stones, automotive diesel, chemical and mineral products, machinery and electrical equipment, plastics, textiles and garments, base metals, transport equipment and agricultural produce.
Israel’s exports to India also span major sectors. Major items include pearls and precious stones, chemical and mineral products, including fertilisers, machinery and electrical equipment, petroleum oils, defence-related equipment and machinery and transport equipment.
With both sides looking to strengthen economic ties and reverse the recent fall in trade, the upcoming FTA talks are being closely watched as a potential turning point in the India-Israel economic relationship.
Business
‘Ships continuously coming even amid blockage’: Centre assures 100% energy supplies across the country – The Times of India
The Centre assured that LPG supply across the country is normal, despite rising tensions in the Middle East, with shipments sailing through the Strait of Hormuz without any disruption. Dismissing fears of any shortage in the nation, petroleum and natural gas secretary Neeraj Mittal, on Thursday, said that domestic availability remains stable. “I don’t see any problem anywhere. All domestic supplies are at 100 per cent,” he stated, adding that around 70 per cent of packed LPG has already been released into the system.While acknowledging the possibility of minor, localised supply bottlenecks, Mittal said such issues are routine and managed on a day-to-day basis.He also addressed concerns over maritime movement in the region, noting that vessel traffic has not faced delays. “Ships have been continuously coming even when there was a blockage. It takes its normal travel time. We are not talking about any delay in crossing the Strait,” he said.According to Mittal, the government is closely tracking developments and remains prepared to act if needed. “The government is reviewing this on a daily basis. If any change has to be made, it will be done,” he said.Speaking at a conference on energy security and India’s growing gas demand, Mittal further emphasised the need for preparedness in light of recent global developments. He highlighted that nearly 90% of India’s crude oil imports pass through the Strait of Hormuz, underlining its strategic importance.He further noted that India sources crude oil from 41 countries, natural gas from 30 countries, and LPG from 13 countries, stressing that such diversification plays a key role in shaping future energy policies.“The government is committed to ensuring that gas is available to all entities, and we are also focusing on diversification so that such crises do not impact supplies,” he said. Meanwhile, Green Asha, a fuel carrier with over 15,400 tonnes of LPG, also arrived in the country on Thursday after crossing Strait of Hormuz earlier this week.The conference, organised by the petroleum and natural Gas regulatory board (PNGRB) in partnership with Indraprastha Gas Limited (IGL), brought together stakeholders to discuss the expanding role of natural gas in the country’s energy mix.Discussions at the two-day event focused on infrastructure investment, regulatory support, and addressing sectoral challenges, while also encouraging innovation as India works to strengthen its energy security in the face of global uncertainties.
Business
Iran war: Oil prices rise as traders eye fragile ceasefire deal
The cost of crude plunged on Wednesday after a deal was announced that includes the opening of the Strait of Hormuz.
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Strait of Hormuz open or close? Only a ‘trickle’ of oil leaving right now despite ceasefire – The Times of India
The tussle over the opening of the Strait of Hormuz continues as the Middle East crisis intensifies, with oil shipments yet to return to normal levels. According to a senior Gulf Oil adviser, any impact on fuel prices in the United States is likely to take time.Tom Kloza, the company’s chief energy adviser, told CNN that he is still “not seeing the evidence of more crude oil departing” the strait, even though reopening the route was reportedly part of the two-week ceasefire agreed on Tuesday night.Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed that traffic through the strait slowed sharply and then stopped, blaming what it described as a violation of the ceasefire by Israel in Lebanon.Kloza said the situation remains uncertain and progress has been slow. “I would emphasize these are really baby steps right now. There’s no indication that the strait is going to reopen, and it seems like a flimsy ceasefire, to say what’s obvious,” he told CNN’s Jake Tapper.He added that only “a trickle” amount of oil is currently leaving the region. Because of the fragile ceasefire, companies are likely to be cautious about sending oil through the route.“It looks as though we’re weeks away from any restoration of even 50% or 70% of the Strait of Hormuz traffic that we depend on,” Kloza said.The situation could escalate further after US President Donald Trump on Thursday issued a fresh warning to Iran over the Strait of Hormuz. Posting on the social media platform Truth Social, he said American military forces and weapons would remain in place until the two sides reach a “real agreement”.“If for any reason it is not, which is highly unlikely, then the “Shootin’ Starts,” bigger, and better, and stronger than anyone has ever seen before. It was agreed, a long time ago, and despite all of the fake rhetoric to the contrary – NO NUCLEAR WEAPONS and, the Strait of Hormuz WILL BE OPEN & SAFE. In the meantime our great Military is Loading Up and Resting, looking forward, actually, to its next Conquest. AMERICA IS BACK!”Global energy supplies continue to face pressure as Iran restricts movement through the Strait of Hormuz, a vital route that carries around 20% of the world’s oil. The conflict has now stretched beyond a month, following strikes on Iran by the United States and Israel on February 28.Meanwhile, oil prices edged up on Thursday after recording their sharpest single-day drop since April 2020, as ongoing tensions in the Middle East and uncertainty over the Strait of Hormuz kept markets unsettled. Brent crude climbed back towards $97 a barrel after a 13% fall on Wednesday, while West Texas Intermediate hovered near similar levels.
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