Israel expects two more rounds of negotiations with India on the proposed free trade agreement, with the two sides likely to have greater clarity on the pact by February 2027, Israeli Ambassador to India Reuven Azar said.

In an interaction with IANS, Azar said the second round of negotiations was held last month, following an agreement on the terms of reference reached at the end of last year.

"We expect to have two more rounds, one in October and probably the last one by February and I think that by then we will know exactly where we stand," he said.

Asked about the potential benefits of the FTA for both countries, Azar said discussions have so far focused on traditional market access issues, but the negotiations also cover areas such as reciprocal buybacks and cooperation.

He said bridging the gap in market access could be challenging because Israel has already lowered its tariffs and the two markets differ considerably in size.

However, the Israeli envoy identified high-tech cooperation as an area with significant potential for expanding bilateral economic ties.

“The greatest potential, I think, lies in high-tech cooperation,” he told IANS.

Azar further noted that greater innovation cooperation between the two countries could encourage Israeli companies to operate more freely in the Indian market.

The envoy's comments come amid efforts by India and Israel to deepen their economic and technology partnership.

Earlier in May, Azar highlighted six core values underpinning the bilateral relationship -- civilisational resilience, the fight against terrorism, democratic values, innovation & competitiveness, religious tolerance, and inclusive development.

India and Israel share a special and unique relationship and stressed the need to translate their common values into greater cooperation and investment, according to his video shared on X.