New Delhi: India and Israel on Monday signed a landmark Bilateral Investment Agreement (BIA) aimed at strengthening economic cooperation and creating a secure framework for mutual investments.
The agreement was signed in New Delhi by Union Finance and Corporate Affairs Minister Nirmala Sitharaman and Israel’s Finance Minister Bezalel Smotrich, in the presence of senior officials from both governments.
The pact is seen as a historic milestone in the economic relations of the two nations. It is designed to provide investors with greater certainty, protection and a transparent mechanism for dispute resolution through arbitration. The agreement also safeguards investments against risks such as expropriation and ensures smooth transfer of funds and compensation for losses, while maintaining the sovereign regulatory rights of both states.
Currently, bilateral investments between India and Israel stand at about $800 million. With the new framework in place, both sides expect a significant boost in trade and cross-border investments. Highlighting India’s pro-investment reforms over the past decade, Sitharaman noted that India’s growth trajectory has positioned it as the fastest-growing major economy. She stressed that the BIA should encourage more business-to-business engagement to fully leverage emerging opportunities.
Sitharaman also conveyed condolences over the loss of lives in a terrorist attack in Israel and underlined the shared civilizational values of the two countries in promoting peace. Both ministers acknowledged the common challenges of terrorism and expressed solidarity in addressing security threats.
Minister Smotrich emphasised the strong economic performance of both nations despite security concerns and called for deeper cooperation in cybersecurity, defence, innovation and high-technology sectors. He also invited Sitharaman to visit Israel.
The two sides reaffirmed their commitment to enhancing cooperation in fintech, infrastructure, financial regulation, and digital payments. The signing of the BIA marks a significant step toward building a more robust and resilient investment environment between India and Israel.
