Jerusalem, Nov 23: India and Israel are considering implementing their proposed free trade agreement (FTA) in two phases to ensure early benefits for the trade community of both countries, Commerce and Industry Minister Piyush Goyal said on Sunday.
India and Israel on Thursday inked terms of reference (ToR) to formally launch negotiations for the agreement.
The ToR include market access for goods by eliminating tariff and non-tariff barriers, investment facilitation, simplification of customs procedures, increasing cooperation for innovation and technology transfer, and easing norms to promote trade in services.
“We are considering doing this in two tranches. A decision will be taken when the talks begin. Both ministers are keen to finalise the first phase early so that the trade community benefits sooner,” Goyal said here.
The minister is in Israel to meet leaders and businesses to discuss ways to boost bilateral trade and investments. He is leading a 60-member business delegation.
Goyal said that he and Israeli Economy and Industry Minister Nir Barkat have agreed that they will first focus on low-hanging fruit in the FTA.
They have also decided not to touch the sensitive issues on both sides.
The two countries, he said, may look at “how innovative and R&D can drive greater investments in each other’s countries, work on joint projects where we can leverage on their skill sets and they can leverage on the economies of scale in a large market like India”.
“It is quite possible that we may come out with the first phase on an FTA, so that we can kickstart the benefits faster,” Goyal said.
On a big metro project in Israel, the minister said Israel has just come out with pre-qualification documents for a USD 50 billion metro project in Tel Aviv.
It involves 300 km of underground tunnelling and is one of the largest projects, and they are keen that Indian companies should also bid for it, he said.
“We have several players, both in the public and private sectors, who have done massive works. We have 23 cities which are setting up metros in India,” Goyal said, adding that Israel would “very seriously” like India to be a part of that project and “I hope Indian companies take interest and join the bidding process”.
During 2024-25, India’s exports to Israel dipped 52 per cent to USD 2.14 billion from USD 4.52 billion in 2023-24. Imports, too, fell 26.2 per cent to USD 1.48 billion last fiscal year. The bilateral trade stood at USD 3.62 billion.
India is Israel’s second-largest trading partner in Asia.
Though bilateral merchandise trade is dominated mainly by diamonds, petroleum products, and chemicals, recent years have witnessed an increase in trade in areas such as electronic machinery and high-tech products, communications systems, and medical equipment.
Major exports from India to Israel include pearls and precious stones, automotive diesel, chemical and mineral products, machinery and electrical equipment, plastics, textiles, apparel, base metals, transport equipment, and agricultural products.
Imports include pearls and precious stones, chemical and mineral/fertiliser products, machinery and electrical equipment, petroleum oils, and defence, machinery, and transport equipment. (PTI)
