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)

Israeli manufacturer and marketer of private label apparel products Delta Galil Industries has reported record full-year sales of $2.12 billion in 2025 ended December 31, up 4 per cent year-over-year (YoY). Growth reflected organic gains across geographies, product categories and channels, supported by continued momentum in owned-brand direct-to-consumer (DTC) operations, where sales increased 15 per cent YoY.

The gross profit expanded 5 per cent to a record $900.3 million from $856.3 million, while gross margin improved 60 basis points (bps) to 42.5 per cent. The improvement was driven by a higher DTC mix, operational efficiency gains across manufacturing facilities and favourable exchange-rate movements, partly offset by US tariff impacts.

Delta Galil has reported record 2025 sales of $2.12 billion, up 4 per cent, driven by DTC growth and organic expansion.
Gross profit rose 5 per cent, while EBIT and net income declined due to tariffs and higher expenses.
Q4 sales reached $611.1 million with strong digital momentum.
The company declared a $10 million dividend and expects high-single-digit sales and double-digit profit growth in 2026.

Operating profitability moderated despite revenue growth. EBIT excluding non-core items declined to $174.2 million, representing 8.2 per cent of sales, compared with $184.1 million or 9 per cent in 2024. Reported EBIT stood at $164.4 million versus $169.2 million previously, reflecting tariff effects and increased SG&A expenses linked to retail expansion initiatives, Delta Galil said in a press release.

Net income excluding non-core items decreased 5 per cent to $102.6 million, while reported net income reached $93.7 million compared with $94.6 million in the prior year. Diluted earnings per share (EPS) excluding non-core items were $3.55, down from $3.82, with reported EPS at $3.21.

EBITDA excluding IFRS 16 stood at $209.1 million compared with $217.1 million in 2024. Cash flow from operating activities excluding IFRS 16 amounted to $131.8 million, versus $153.1 million a year earlier.

Financial position remained strong at year end, with cash of $135.8 million and record shareholders’ equity of $903.6 million. Net debt to EBITDA excluding IFRS 16 increased to 0.9x from 0.6x, reflecting ongoing investment in production capacity and distribution infrastructure.

“I am proud of our performance throughout 2025, which reflects the strength and commitment of our team, the resilience of our balance sheet, our culture of continuous improvement, and the power of our global platform. Together, these fundamentals give us confidence that we are well positioned for another year of profitable growth,” said Isaac Dabah, CEO of Delta Galil.

In the fourth quarter (Q4) of 2025, sales rose 2 per cent YoY to a record $611.1 million from $599.2 million. DTC sales of owned brands, excluding Bare Necessities, advanced 15 per cent in both the quarter and full year, while own-web sales surged 27 per cent in the quarter, marking the twelfth consecutive quarter of double-digit growth.

The gross profit in Q4 climbed 5 per cent to $263.2 million, with gross margin expanding 140 bps to 43.1 per cent. EBIT excluding non-core items declined to $59.3 million from $64.7 million, while reported EBIT reached $51.1 million versus $53.1 million a year earlier. Net income excluding non-core items dropped 13 per cent to $35.5 million, and reported net income stood at $28.0 million. Operating cash flow excluding IFRS 16 strengthened to $89.5 million from $64.3 million, reflecting improved working-capital dynamics.

Delta Galil declared Q4 dividend of $10 million, or $0.3825 per share, payable on March 11, 2026.

“Our fourth quarter capped an outstanding year of execution in what has been a challenging retail environment. We successfully navigated the impact of US tariffs, expanded programmes with key global customers, and delivered record sales driven by organic growth across most of our channels, geographies, and product lines. At the same time, we continued to make strategic investments in our factories and distribution centers to improve efficiencies, which enhanced our operations, brands and capabilities,” added Dabah.

Looking ahead, Delta Galil expects continued growth momentum in 2026 and guided for sales of $2.29-$2.33 billion, EBIT of $204-212 million and EBITDA of $324-332 million, alongside net income of $116-123 million and diluted EPS of $4-4.23, signalling high-single-digit revenue growth and double-digit profitability expansion compared with 2025.

Fibre2Fashion News Desk (SG)