The first round of negotiations for the India-Israel Free Trade Agreement (FTA), held from 23 to 26 February 2026 in New Delhi, concluded successfully on Thursday.The Terms of Reference (ToR) was signed in November 2025, establishing a structured framework for discussions on identified areas to enhance trade and economic cooperation.Meanwhile, in a joint statement issued later in the evening, PM Narendra Modi, who is on a two-day state visit to Israel, and Israel PM Benjamin Netanyahu, welcomed the launch of the India-Israel Financial Dialogue to boost financial cooperation.Both leaders emphasised the importance of unlocking the full potential of bilateral trade and investment. They welcomed the signing of the India-Israel bilateral investment agreement by the two Finance Ministers in New Delhi in September 2025, which is expected to enhance investor confidence, promote greater two-way investments, and ensure transparency, predictability, and protection through a clear framework of treatment of investment and independent dispute resolution mechanism.They welcomed the signing of the Terms of Reference (ToR) for the FTA agreement negotiations and the convening of the first negotiating round in New Delhi. The leaders assert their commitment for the realization of the FTA agreement between the two countries and tasked the negotiating teams to expedite the negotiations for an early signing of an FTA.They further emphasised that a resilient financial ecosystem is a fundamental pillar of economic stability. They welcomed the strategic partnership in the financial-cyber domain. This collaboration will focus on enhancing the resilience of the financial ecosystem through the exchange of financial- cyber intelligence, joint development of methodologies, and the performance of multilateral financial-cyber simulations operationalised through Financial Computer Security Incident Response Teams of both countries.Netanyahu appreciated India’s fintech revolution, exemplified by the Unified Payments Interface (UPI), which is a world-class model for affordable, real-time cross-border transactions. Both sides agreed to explore linking UPI with Israel’s fast payment system to enhance interoperability and strengthen economic ties.In addition, both leaders welcomed the signing of an MoU between NPCI International and MASAV for cooperation in order to examine linkages between NPCI and MASAV for cross-border payments between the countries.Furthermore, both leaders encouraged more Indian participation in the infrastructure sector of Israel, particularly in light of major upcoming projects in Israel in the sectors of metro, rail, road, airports, desalination plants, waste-water treatment plants, etc.The two leaders also welcomed the successful conclusion of the 4th round of India-Israel CEOs Forum and Business Summit in Tel Aviv in November 2025. They commended the meaningful engagement between business and government leaders, which contributed to strengthening bilateral economic cooperation and unlocking new opportunities for investment and collaboration across key sectors.Both leaders reaffirmed their commitment to building on this positive momentum to further deepen the India-Israel strategic partnership. They also welcomed the signing of the MoU on Arbitration between Indian Council of Arbitration (ICA) and Israeli Institute of Commercial Arbitration (IICA) recognising it as a significant step toward facilitating smoother commercial dispute resolution and enhancing investor confidence.