Deal to boost trade, protect investors, and deepen economic cooperation
New Delhi: India and Israel on Monday sealed a bilateral investment agreement, aiming at strengthening reciprocal investments and expanding trade ties between the two nations. The agreement was signed in New Delhi by Union Finance Minister Nirmala Sitharaman and her Israel counterpart Bezalel Smotrich, who is leading a high-level delegation to India.
Israel is the first Organisation for Economic Co-operation and Development (OECD) member state with which India signed this strategic agreement, in accordance with India’s new model for investment treaties. “The Government of India and the Government of the State of Israel signed a Bilateral Investment Agreement # BIT in New Delhi, today. The pact was inked by Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich,” the Union finance ministry said in a post on X
“The new agreement supports the promotion of reciprocal investments between the parties, ensuring certainty and protection for investors, and will contribute to expanding trade and investment between the two countries. It replaces the previous agreement signed in 1996, which was terminated in 2017 as part of India’s policy with reference to its investment treaties,” the Israel finance ministry statement said.
A delegation, led by Minister Smotrich, is currently visiting India to promote a range of economic collaborations between the two nations. “The finance ministers of both the nations emphasised the profound economic relations between the two countries, which are based on shared strategic interests, as well as their commitment to advancing economic cooperation in the fields of innovation, infrastructure development, financial regulation, and trade in digital services,” the Israel finance ministry said.
During April 2000 and June 2025, India received $337.77 million in foreign direct investment (FDI) from Israel. Signing of the pact is important as both countries are also negotiating a free trade pact. “It was also agreed to cooperate within the framework of regional development banks,” the statement added.
