India and Israel are advancing towards a Free Trade Agreement (FTA), with the next round of discussions scheduled for January. The talks aim to boost trade and investment, focusing on the FTA's structure and negotiation plan. Despite a recent decline in bilateral trade, with exports falling 52% and imports 26.2% in 2024-25, India remains Israel's second-largest Asian trading partner. Traditional trade includes diamonds, petroleum, and chemicals, with expanding exchanges in high-tech and medical equipment.