Prime Minister Narendra Modi on Thursday announced that India and Israel have agreed to push forward negotiations on a mutually beneficial Free Trade Agreement, signalling a new phase in economic cooperation between the two countries. The announcement was made during a joint press interaction with Israeli Prime Minister Benjamin Netanyahu following bilateral discussions.
PM Modi stated that both governments are committed to expanding trade and investment flows and have instructed their respective teams to work toward concluding a comprehensive trade pact that supports businesses and creates new opportunities in both markets. He described the move as part of a broader effort to strengthen long-term economic stability and innovation-driven growth.
In a significant step toward financial integration, the two sides also signed an agreement to link India’s Unified Payments Interface (UPI) with Israel’s digital payment ecosystem. Once operational, the arrangement will allow Indian tourists and companies operating in Israel to make smooth digital transactions using familiar platforms, while Israeli businesses and visitors will gain easier access to India’s fast-growing digital payments infrastructure. Officials said this connectivity is expected to boost tourism, startup collaboration, and cross-border commerce.
During the media briefing, PM Modi announced that India and Israel have decided to elevate their bilateral ties to what he described as a “special strategic partnership.” He noted that the decision reflects the shared ambitions of the two nations and acknowledges the steady expansion of cooperation in defence, agriculture, water management, innovation, and advanced technologies over the years.
Addressing regional issues, PM Modi said that humanity should not suffer because of prolonged conflict and emphasised the importance of dialogue and diplomacy. Expressing support for ongoing peace efforts related to Gaza, he said India backs initiatives that create a pathway toward stability and long-term peace in the region.
Following the talks, several agreements were signed covering innovation partnerships, agricultural research, and technological collaboration. Both sides highlighted their existing cooperation in areas such as precision farming, water conservation technologies, and startup ecosystems, indicating that these sectors will receive further policy support.
Foreign Secretary Vikram Misri said the Prime Minister’s visit, undertaken at the invitation of PM Netanyahu, lasted just over 24 hours but delivered substantial outcomes. He noted that this was PM Modi’s second visit to Israel, the first having taken place nearly nine years ago, and described the latest trip as an important milestone in the evolving partnership between the two countries.
