Trade Talks
India-Israel FTA talks stalled due to West Asia war, says govt source
This story was originally published at 12:58 IST on 5 May 2026
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NEW DELHI – Discussions between India and Israel for a free trade agreement have been set back due to the war in West Asia, a senior commerce ministry official said. A second round of talks for a free trade agreement between the two countries was scheduled to take place this month after the previous round held in February.
The official did not confirm whether the talks, planned in Israel, would take place as scheduled. The war in West Asia began on Feb. 28 when the US and Israel bombed Tehran and killed Iran's supreme leader Ali Khamenei. Even under a ceasefire, Israel currently to occupy some territory in Lebanon and has been involved in a ground and air offensive against Hezbollah.
In addition to Israel, the government has begun discussions for trade agreements with Mexico and Maldives, though these are at an initial phase and would take some time to come to fruition. The commerce ministry was also actively involved in talks for a trade deal with Canada, with a round of discussions underway in New Delhi, the official said.
As for the long-running discussions on a trade deal with the US, the official said the delegation had a good trip to the US in April but declined to give further details, including a date for the next round of talks. The US – India's largest export destination — currently levies a 10% tariff on Indian goods, down from 18% that was agreed upon when a trade agreement was announced in February and from 50% imposed in August last year. End
Reported by Aaryan Khanna and Pratiksha
Edited by Tanima Banerjee
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