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    Home » India Israel move on free trade talks and investment pact
    News

    India Israel move on free trade talks and investment pact

    February 27, 2026
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    JERUSALEM: India and Israel agreed to upgrade their relationship to what they called a “Special Strategic Partnership for Peace, Innovation and Prosperity” after talks between Prime Minister Narendra Modi and Israeli Prime Minister Benjamin Netanyahu during Modi’s state visit on Feb. 25-26. A joint statement said the leaders reviewed cooperation spanning defense and security, critical technologies, cyber, agriculture, water management, health, entrepreneurship, space and people-to-people ties. The statement said both sides would strengthen mechanisms across government, business and public exchanges.

    India Israel move on free trade talks and investment pact
    Joint statement details 16 India Israel agreements spanning tech, trade, finance and labor mobility.

    The leaders welcomed a Memorandum of Understanding on defense cooperation signed on Nov. 4, 2025, and said it provided a basis for a future roadmap in defense ties. The joint statement said cooperation had expanded in scope and scale in recent years. It also said the two prime ministers aimed to translate policy priorities into tangible outcomes through institutionalized engagement. The statement did not provide financial terms or specific procurement details related to defense cooperation.

    On technology, the joint statement said the two sides launched a Critical and Emerging Technologies initiative to be led by the national security advisers of both countries. It said Modi and Netanyahu reviewed the India-Israel Industrial R&D and Innovation Fund and agreed to strengthen its implementation and outreach to industry. The statement said both sides would raise contributions to the India-Israel Joint Research Calls from $1 million to $1.5 million each, and elevate the Joint Commission on Science and Technology to the ministerial level. It also cited agreements to deepen cooperation in artificial intelligence, space and a horizon scanning mechanism.

    Trade, Payments and Connectivity

    The joint statement said the leaders welcomed the India-Israel Bilateral Investment Agreement signed by the two finance ministers in New Delhi in September 2025, describing it as a step to support transparency, predictability and investment protection. It also said both sides welcomed the signing of terms of reference for free trade area negotiations and the holding of the first negotiating round in New Delhi. The leaders tasked negotiating teams to expedite talks for an early signing, the statement said. It also noted a push to expand direct air connectivity between Tel Aviv and major Indian cities.

    The statement said the leaders agreed to strengthen cooperation in financial cybersecurity, including exchanging financial-cyber intelligence and conducting simulations through the financial computer security incident response teams of both countries. It said the two sides would explore linking India’s Unified Payments Interface with Israel’s fast payment system, and welcomed an MoU between NPCI International Payments Limited and MASAV to examine payment linkages. The leaders also welcomed the launch of an India-Israel Financial Dialogue. The statement noted the conclusion of the fourth India-Israel CEOs Forum and Business Summit in Tel Aviv in November 2025, and an arbitration cooperation agreement between commercial arbitration bodies.

    Agriculture, Mobility and Regional Issues

    Modi and Netanyahu affirmed cooperation in water conservation, wastewater treatment and reuse for agriculture, desalination, water utility reforms and the use of advanced water technologies, including for cleaning the Ganges and other rivers, the statement said. It said a capacity-building program in agriculture led by MASHAV in collaboration with India’s agriculture ministry had benefited hundreds of thousands of Indian farmers. The statement cited 35 agriculture centres of excellence operating in India and eight more being jointly operationalized, and said more than a million farmers have been trained at the centres. It also noted an ICAR-MASHAV agreement establishing the India-Israel Innovation Centre for Agriculture and 20 joint fellowships at Israel’s Volcani Agriculture Research Organization, alongside fisheries and climate consultations.

    On security, the statement said the leaders strongly condemned terrorism, including the April 22, 2025, attack on Indian tourists at Pahalgam in Jammu and Kashmir, and a Nov. 10, 2025, incident near Red Fort in New Delhi. It said the leaders welcomed U.S. President Donald Trump’s “Comprehensive Plan to End the Gaza Conflict” and underlined the need for a just and durable peace, security, and freedom of navigation and trade through dialogue. The statement also cited steps to deepen parliamentary and cultural ties, expanded labor mobility protocols and a target of up to 50,000 additional Indian workers within five years, plus early 2026 talks on health and new education cooperation, while noting 16 cooperation instruments across AI, cybersecurity, education, culture, agriculture, mining, fisheries, payments, arbitration and securities regulation. The joint statement said follow-up would proceed through established dialogues and working groups – By Content Syndication Services.

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