New Delhi, Nov. 23 -- India and Israel have moved a step closer to signing a long-pending Free Trade Agreement (FTA) after finalizing the Terms of Reference (ToR) for formal negotiations.

The push comes at a time when bilateral trade has contracted sharply and India is looking to diversify export markets beyond the US.

What the pact aims to achieve, and why it matters now-Mint explains.

Both sides signed the ToR for the India-Israel FTA during Union commerce minister Piyush Goyal's recent visit to Israel. According to a PIB release dated 19 November, Goyal led a large business delegation, accompanied by a 60-member team facilitated by CII, FICCI, Assocham and Start-up India.

During the signing, ministers reaffirmed their commitment to...