India-Israel Sign Bilateral Investment Agreement to Boost Economic and Strategic Ties

 Marking a historic milestone in their growing partnership, the Government of the Republic of India and the Government of the State of Israel signed a Bilateral Investment Agreement (BIA) in New Delhi today. The agreement was signed by Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, and H.E. Mr. Bezalel Smotrich, Finance Minister of Israel, in the presence of senior officials from both nations.

A Milestone in India-Israel Relations

The signing of the BIA represents a major step forward in strengthening the economic and strategic ties between India and Israel. The agreement aims to:

• Boost bilateral investments by creating a predictable investment environment.

• Protect investors’ interests through clear standards of treatment and legal safeguards.

• Facilitate arbitration mechanisms for independent dispute resolution.

• Safeguard against expropriation, ensuring transparency, compensation for losses, and smooth transfer of funds.

Crucially, the agreement balances investor protections with the sovereign regulatory rights of both nations, preserving policy space for governance while promoting business confidence.

Strengthening Economic Cooperation

Currently, bilateral investments between India and Israel stand at around USD 800 million. With the signing of the agreement, both governments expect a significant expansion of trade and investment flows, benefiting businesses and economies on both sides.

Finance Minister Sitharaman stressed the importance of increasing business-to-business interaction to fully leverage the opportunities created by the agreement. She also highlighted the series of economic reforms India has implemented over the past decade, which have made it the fastest-growing major economy in the world and a highly attractive investment destination.

Shared Values and Security Concerns

During the event, Finance Minister Sitharaman expressed condolences for the innocent lives lost in a terrorist attack in Israel earlier today. She emphasized the shared civilizational ethos of India and Israel, rooted in peace, resilience, and cooperation, while also noting the common security challenges both nations face.

The two ministers expressed solidarity against terrorism and reaffirmed their joint commitment to countering threats to peace and stability.

Israel’s Vision for Collaboration

Israeli Finance Minister Bezalel Smotrich noted the parallel trajectories of India and Israel, both achieving high levels of economic growth despite security challenges. He emphasized the potential for deeper collaboration in:

• Cybersecurity

• Defense cooperation

• Innovation and start-ups

• High-technology sectors

He further underscored Israel’s willingness to partner with India in building resilient, technology-driven economies.

Future Areas of Focus

Both sides identified key areas for future cooperation, including:

• Fintech innovation

• Digital payments connectivity

• Infrastructure development

• Financial regulation

The agreement is expected to serve as a foundation for greater collaboration in these fields, building on the strong economic and technological complementarities between the two countries.

Next Steps and Diplomatic Engagements

The Israeli Finance Minister extended a formal invitation to Smt. Nirmala Sitharaman to visit Israel, signaling the intent of both nations to deepen engagement and explore new avenues of cooperation.

With this agreement, India and Israel are not only strengthening their economic partnership but also reaffirming their shared commitment to peace, stability, and innovation-driven growth.