India and Israel will begin negotiations for a free trade agreement (FTA) after concluding a Bilateral Investment Treaty (BIT), Commerce and Industry Minister Piyush Goyal said in Tel Aviv on Thursday, as both countries moved to revive long-pending trade talks and widen sector partnerships.

Speaking after the signing of terms of reference for the FTA process, Goyal said the BIT and the proposed FTA together are expected to expand market access, improve the flow of capital and investments, and ease trade in goods and services. He said the two agreements would also aim to remove obstacles to doing business and bring greater clarity and predictability to economic engagement.

Goyal also said both sides have agreed to keep sensitive sectors outside the scope of the trade pact where required.

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