Business & Economics
India & Israel Sign Terms of Reference, Formally Opening FTA Negotiations
On 23 Nov 2025, during Commerce Minister Piyush Goyal’s first Israel visit in two decades, the two governments signed a Terms of Reference document that officially launches bilateral free-trade talks.
Focusing Facts
- Document was inked in Tel Aviv on 23 Nov 2025, kicking off negotiations aimed at a two-phase FTA implementation.
- Goyal led a 60-plus Indian CEOs delegation and met PM Netanyahu, President Herzog and Economy Minister Nir Barkat during the three-day trip (20-23 Nov 2025).
- Bilateral merchandise trade (ex-defence) peaked at USD 10.77 billion in FY 2022-23 but slipped to USD 3.75 billion in FY 2024-25 amid Red Sea route disruptions.
Context
Big-ticket trade pacts often begin with seemingly procedural ‘terms of reference’—much like India’s 2004 framework agreement that eventually produced the 2010 ASEAN FTA. This step with Israel revives a process frozen since exploratory talks in 2010, reflecting two structural shifts: India’s aggressive post-2020 pursuit of nimble, sector-split FTAs (see the 2022 UAE mini-FTA) and Israel’s search for Asian partners as EU ties fray. If concluded, the deal would stitch together Israel’s capital-intensive tech ecosystem with the scale of India’s market, echoing the 1962 US–Israel tax treaty that seeded today’s defence cooperation. Over a 100-year horizon, such economic inter-weaving can entrench strategic alignment in the Indo-Mediterranean arc, but its true weight will depend on whether regional instability or protectionist backlashes—both cyclical in history—derail the delicate two-phase timetable.
Perspectives
Indian government-aligned, nationalist outlets
e.g., Republic World, Asianet Newsable — Portray Goyal’s Israel trip as a major diplomatic win that will rapidly turbo-charge trade, tech and strategic ties and showcases Prime Minister Modi’s leadership. Cheerleading tone lifts government achievements while skimming over any unresolved trade frictions or geopolitical risks highlighted nowhere in the coverage.
Business-policy press offering a cautious, deal-making lens
e.g., The Statesman — Stresses that the FTA will likely be rolled out in two phases, focusing first on ‘low-hanging fruit’ and steering clear of sensitive issues, signalling a more measured, incremental approach. By zeroing in on procedural details it plays down the political pageantry and may understate the hurdles that could still derail talks or the domestic opposition such deals sometimes face.
Wire-service driven straight news
ANI syndicated pieces via LatestLY, SocialNews.XYZ — Relays Goyal’s talking points verbatim—FTA launch, business forums, tech partnership—framing the visit as productive without added commentary. Heavy reliance on official quotes and copy-paste syndication gives these stories a stenographic quality, limiting scrutiny and repeating government framing unchallenged.