In a significant move to bolster agricultural ties, India and Israel have discussed ways to strengthen cooperation in the agriculture sector. This development comes as Commerce and Industry Minister Piyush Goyal, during an official visit to Israel, met with Israeli Minister of Agriculture and Food Security Avi Dichter. The discussions focused on advancing agricultural collaboration, with both sides exploring partnerships across agriculture, technology, innovation, and trade.
Goyal’s visit, which concluded on Saturday, included a series of bilateral meetings aimed at fostering deeper economic relations between the two nations. The timing of this visit is particularly noteworthy as it follows the signing of the terms of reference (ToR) for a free trade agreement (FTA) between India and Israel on Thursday. This ToR sets the stage for formal negotiations, encompassing market access through tariff and non-tariff barrier removal, investment facilitation, technology transfer, simplification of customs procedures, and easing norms for trade in services.
Goyal emphasized the potential of this agreement, stating that the complementarities and challenges faced by both countries could serve as a strong foundation for bilateral trade relations. He assured that Israel will not seek market access in sensitive areas such as dairy, rice, wheat, and sugar, addressing key concerns that have historically hindered progress in similar pacts. Earlier efforts for an FTA saw eight rounds of negotiations, and the renewed push aligns with India’s broader strategy to diversify its trade partnerships.
The potential benefits of this FTA extend beyond agriculture. Israel’s economy minister, Nir Barkat, highlighted the agreement’s potential to drive investment, describing India as “a great bet for investment” and praising the Make in India initiative as “one of the smartest concepts.” This sentiment underscores the strategic importance of the partnership, with Israel seen as a valuable technology partner despite modest current trade volumes. During the 2024-25 fiscal year, India’s exports to Israel fell 52% to $2.1 billion, while imports declined 26% to $1.5 billion.
The discussions and agreements mark a pivotal moment in India-Israel relations, with the potential to unlock new opportunities in agriculture, technology, and trade. As negotiations proceed, the focus will be on leveraging these complementarities to foster mutual growth and innovation.