September 9, 2025
Beyond legal protections, the agreement outlines forward-looking collaboration in key economic sectors, fintech innovation, infrastructure development, financial regulation, and digital payments, highlighting shared aspirations for deeper economic integration
It is also anticipated to lay the groundwork for a broader Free Trade Agreement (FTA) between the two countries
Both finance ministers underscored resilience amid shared security challenges, calling for deeper cooperation in areas such as cybersecurity, defence, high technology, and innovation
The countries agreed to enhance economic and financial cooperation between the two countries and to promote and protect investments on a reciprocal basis
India and Israel signed a landmark Bilateral Investment Agreement (BIA) in New Delhi, signaling a strategic boost in their economic partnership. The treaty was inked by India’s Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich, in the presence of senior officials from both nations.
The brokered agreement marks a significant milestone: Israel is the first OECD member to sign a “strategic agreement” under India’s revamped investment treaty model. It comes with a range of investor safeguards, including minimum standard of treatment, protection from expropriation, provisions for transparent operations, smooth transfers, fair compensation for losses, and an independent arbitration mechanism to settle disputes.
Beyond legal protections, the agreement outlines forward-looking collaboration in key economic sectors, fintech innovation, infrastructure development, financial regulation, and digital payments, highlighting shared aspirations for deeper economic integration.
Financially, the treaty is projected to invigorate bilateral investment flows, which currently hover around USD 800 million. It is also anticipated to lay the groundwork for a broader Free Trade Agreement (FTA) between the two countries
During the signing, Smotrich emphasized that Indian businesses could now feel more secure investing in Israel, reflecting the treaty’s role in reinforcing investor confidence. Meanwhile, both finance ministers underscored resilience amid shared security challenges, calling for deeper cooperation in areas such as cybersecurity, defence, high technology, and innovation.
Both the Ministers emphasised their commitment to advancing economic cooperation in the fields of fintech innovation, infrastructure development, financial regulation, and digital payment connectivity. They agreed to enhance economic and financial cooperation between the two countries and to promote and protect investments on a reciprocal basis.
Source: Times of India