The Government of India and the Government of Israel have signed a landmark Bilateral Investment Agreement (BIA) aimed at deepening economic ties and creating a more secure environment for investors. The pact, signed in New Delhi by Union Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich, marks a new chapter in the economic partnership between the two nations.
The agreement ensures a minimum standard of treatment for investors, safeguards against expropriation, guarantees transparency, and allows for smooth transfer of funds and compensation for losses. Importantly, it also establishes an independent dispute resolution mechanism through arbitration — providing businesses with greater confidence in cross-border investments.
Finance Minister Nirmala Sitharaman described the deal as a “historic milestone” in bilateral relations, noting that India’s ongoing economic reforms have made it one of the most attractive investment destinations globally. She also urged for greater business interaction between Indian and Israeli companies to unlock the full potential of the agreement.
Israel’s Finance Minister Bezalel Smotrich welcomed the move, highlighting the resilience of both countries in achieving high economic growth despite security challenges. He underlined the scope for stronger cooperation in areas such as cybersecurity, defense, high-technology, and financial innovation.
Currently, bilateral investments between India and Israel stand at around USD 800 million. The new framework is expected to significantly scale up this figure by providing stronger safeguards and fostering an investor-friendly climate.
Both ministers also expressed their commitment to advancing cooperation in fintech innovation, infrastructure development, financial regulation, and digital payment connectivity — sectors seen as critical for the future growth of both economies.
The signing of the agreement comes at a time when India is pursuing closer ties with key global partners to diversify investments, strengthen supply chains, and accelerate growth in strategic industries.