In a significant move to strengthen economic ties, India and Israel are set to begin formal negotiations for a comprehensive Free Trade Agreement (FTA), as announced by Commerce and Industry Minister Piyush Goyal on Tuesday. The minister also revealed that preliminary data indicates positive growth in India's merchandise exports for November.
Virtual Negotiations to Kickstart Strategic Partnership
Piyush Goyal confirmed that both nations will shortly commence virtual negotiations aimed at establishing an early harvest trade agreement. This initial phase will focus on specific sectors where both countries see immediate potential for enhanced cooperation.
"We will shortly be commencing negotiations virtually to begin with and moving into an early stage early harvest FTA with Israel, where we have tremendous interest in their innovation in their agritech, fintech and other deep tech areas of work," Goyal informed reporters during the announcement.
Expanding Cooperation Beyond Traditional Sectors
The minister elaborated on India's broader interests in the proposed partnership, emphasizing significant opportunities in mobility and services. India is particularly keen on providing skilled manpower for infrastructure development projects in Israel and attracting investments from Israeli companies.
The strategic collaboration aims to leverage Israeli innovations for global market access while creating mutual economic benefits. Goyal highlighted that the potential for an India-Israel FTA is substantial, with both Prime Minister Narendra Modi and Israeli Prime Minister Benjamin Netanyahu directing their administrations to solidify this partnership at the earliest opportunity.
Positive Export Trends and Multiple FTA Initiatives
In addition to the Israel FTA announcement, Goyal shared encouraging news about India's export performance. Quick estimates show merchandise exports have demonstrated growth compared to the same period last year, indicating resilience in the face of global economic challenges.
The minister specifically noted that seafood exports to the European Union have increased significantly, with overall seafood exports showing growth in the past three months despite tariff barriers. "It only goes to show that our Indian business, our Indian exporters, are resilient. They are full of confidence. They have the ability to face challenges," Goyal asserted.
Meanwhile, India continues to expand its trade partnership portfolio, with negotiations for an FTA with the Eurasian Economic Union scheduled to launch on Wednesday. This demonstrates India's proactive approach to strengthening global trade relationships across multiple regions.
During the earlier Board of Trade meeting, Minister Goyal emphasized the critical need for India to expand its economy and create more employment opportunities through increased exports. He called for robust collaboration between the central government and state administrations to drive export expansion and diversification efforts nationwide.
