Israeli FTA Delegation to Visit India
January 05, 26
(IDEX Online) - An Israeli delegation is expected to visit India this month as both sides edge toward a Free Trade Agreement (FTA) that could redefine their economic ties and provide benefits to the diamond industries of both countries.
Talks were dramatically reignited last November when an Indian delegation visited Tel Aviv and Terms of Reference were signed, as a possible precursor to a full agreement.
An FTA would mean a phased eliminate of most tariffs and benefit both countries. Diamonds are already traded with either no or low tariffs between India and Israel, but an FTA would streamline customs, documentation, certification and other barriers.
It would also make it simpler and cheaper for Indian manufacturers to pay for goods in rupee.
India and Israel traded almost $1bn of diamonds during FY 2024-25. India polished gems and jewelry worth $613m. Israel exported $337m of rough diamonds.
Talks on an India-Israel FTA started back in May 2010 but remained largely stalled since 2013. Last November there was a breakthrough when both sides agreed to focus for now on "low-hanging fruit" and deal later with more contentious issues.