India and Israel Strengthen Ties with New Investment Agreement

India and Israel solidified their economic partnership on Monday by signing a landmark bilateral investment agreement. The accord, orchestrated by finance ministers Nirmala Sitharaman of India and Bezalel Smotrich of Israel, aims to protect and promote mutual investments between the two nations.

With provisions to safeguard investments against expropriation and facilitate transparent and efficient compensation mechanisms, the agreement balances investor protection with the regulatory autonomy of each state. This development is expected to significantly boost bilateral trade and investments, which currently total USD 800 million.

The agreement is a crucial step towards strengthening economic cooperation in fintech innovation, infrastructure, and digital payments, amid ongoing negotiations for a broader free trade pact. It also aligns with India's broader economic strategy to attract foreign investments as it aims to become a global manufacturing hub.

(With inputs from agencies.)