India and Israel sign a new Bilateral Investment Agreement to boost trade and cross-border investments.
New Delhi
India and Israel have signed a landmark Bilateral Investment Agreement (BIA) designed to deepen trade and investment ties and provide greater confidence to businesses operating across both economies. The pact was formalised in New Delhi on September 8 by Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich, who is leading a senior delegation to India.
The agreement marks Israel as the first OECD member to adopt India’s new model investment treaty framework. It replaces the 1996 investment treaty, which was terminated in 2017 when India overhauled its policy on bilateral investment accords. Officials said the BIA strengthens investor protection, ensures predictability, and encourages capital flows into sectors such as infrastructure, innovation, financial services, and digital technologies.
Both ministers described the accord as a step toward “stronger, mutually beneficial economic relations,” rooted in longstanding strategic cooperation. They also agreed to explore collaboration with regional development banks and consider a bilateral financial protocol to improve funding conditions for Israeli exporters.
Smotrich invited Sitharaman to visit Israel and noted plans to assess the feasibility of opening a Finance Ministry representation office in India to deepen institutional ties.
The Israeli delegation—comprising Director General Ilan Rom, Chief Economist Dr. Shmuel Abramzon, Accountant General Yahli Rothenberg, and Israel Securities Authority Chairman Seffy Zinger—is engaging Indian officials on regulatory cooperation, capital markets, and joint investment opportunities. Smotrich lauded the Embassy of Israel in New Delhi for facilitating the pact, calling it a milestone for bilateral economic engagement.