India-Israel Trade Pact Gains Momentum As PM Modi Concludes Historic Visit

Updated: February 26, 2026 22:10

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Prime Minister Narendra Modi’s two-day state visit to Israel concluded with a landmark elevation of ties to a Special Strategic Partnership. Both nations advanced negotiations on a Free Trade Agreement (FTA), signed key technology and defence deals, and agreed on UPI integration, marking a new era in bilateral cooperation.

Prime Minister Narendra Modi’s latest visit to Israel has set the stage for a transformative chapter in India-Israel relations. The two democracies, already strong partners in defence and innovation, have now elevated their ties to a Special Strategic Partnership. The visit was marked by high-level talks with Israeli Prime Minister Benjamin Netanyahu and President Isaac Herzog, alongside significant announcements that could reshape trade and technology collaboration.

Key Highlights

India and Israel formally elevated their relationship to a Special Strategic Partnership, underscoring shared priorities in defence, technology, and economic growth.
The first round of negotiations for the India-Israel Free Trade Agreement concluded successfully, with the next phase scheduled for May 2026. Modi emphasized the need for early finalisation to unlock untapped trade potential.
Both nations signed agreements on UPI integration, enabling seamless digital payments between Indian and Israeli businesses and travelers.
Strategic cooperation expanded into artificial intelligence, cybersecurity, agriculture, and water management, reflecting a broadening of the partnership beyond defence.
Modi became the first Indian Prime Minister to address the Israeli Knesset, highlighting India’s commitment to peace in the Middle East and backing a Gaza peace plan.
Cultural diplomacy was also on display, with Modi lauding performances by Indian-origin artists in Israel, reinforcing people-to-people ties.

The visit signals India’s intent to deepen economic and technological engagement with Israel while balancing regional sensitivities. The FTA, once finalized, is expected to boost trade in sectors such as manufacturing, agriculture, and services, providing predictability and opportunities for businesses on both sides.

Sources: NDTV, Mathrubhumi English, Hindustan Times, ET Now, Republic World

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