New Delhi
India and Israel have signed a new Bilateral Investment Agreement (BIA) aimed at strengthening economic ties, fostering high-skill job creation, and enhancing technology collaboration. The current bilateral investment between the two countries is about $800 million, but the pact is expected to unlock significant new inflows, particularly in technology-driven sectors such as digital services, agri-tech, and cybersecurity.
The treaty ensures stronger legal protection for investors, enhancing regulatory certainty and boosting confidence for multinational partnerships. For Indian companies, this means reduced investment risks in Israel, while Israeli investors gain secure access to India’s expanding markets. Joint research and development in advanced manufacturing and digital technologies is expected to accelerate India’s emergence as a global innovation hub.
Beyond technology, Israel’s expertise in infrastructure and water management could support India’s modernisation goals, including smart cities and sustainable projects. The agreement also improves prospects for Indian goods and services in Israeli and wider OECD markets.
As Israel becomes the first OECD member to sign an investment treaty under India’s new model framework, the pact sets a precedent for future international agreements. It is also viewed as a stepping stone towards a broader Free Trade Agreement, which is currently under negotiation.
