India and Israel signed a Bilateral Investment Agreement (BIA) in New Delhi on September 8. The Signatories were Finance Minister Nirmala Sitharaman and Bezalel Smotrich from the Israeli side. Israel described it as a strategic step for both nations in growing markets.
India and Israel officially signed a bilateral investment treaty aimed at promoting and protecting reciprocal investments and replacing the previous agreement that took place in 1996. The procedure took place in New Delhi in the presence of India’s Finance Minister Nirmala Sitharaman and Israel’s Finance Minister Bezalel Smotrich, also the signatories, with senior officials sharing the Dias.
India had signed several Bilateral Investment Treaties (BITs) in the 1990s and early 2000s. At the same time, the government terminated most of the BITs in 2017, which also included the BIT of Israel and India. India introduced a new model BIT in 2016.
Israel has been looking to diversify partnerships in Asia due to geopolitical uncertainty in the Middle East region and rising global trade. Even though India was a natural partner, given their strong defence, technology, and linkages. Israel is the first OECD member state to enter into a BIA with India under an updated framework.
The agreement between India and Israel includes:
- Minimum standard of treatment
- Protection against expropriation
- Transparency in investor operations
- Smooth fund transfers and compensation for losses
The BIA is said to be designed to boost confidence, mutual investments, and deepen economic collaboration between the two nations—currently, bilateral investment stands at around US$800 million.
Both ministers from the counterpart emphasised cooperation in areas including fintech innovation, infrastructure development, financial regulation, and digital payment connectivity. The agreement is poised to accelerate collaboration in digital tech, cybersecurity, R&D, and advanced manufacturing, supporting India’s push toward innovation-led growth.
