In a major milestone for economic collaboration between Israel and India, Finance Ministers from both nations signed a groundbreaking Bilateral Investment Agreement (BIA) today in New Delhi. The agreement marks a significant step forward in bilateral economic relations and positions Israel as the first OECD country to sign such a treaty under India’s new investment model. The signing ceremony was led by Bezalel Smotrich, Israel’s Minister of Finance, and Nirmala Sitharaman, India’s Minister of Finance. The agreement is designed to facilitate reciprocal investments, provide greater certainty and protection for investors, and foster increased trade and financial cooperation.
The new BIA replaces the 1996 investment treaty, which was terminated by India in 2017 amid a broader policy shift toward renegotiating its international investment agreements based on a new framework. “This agreement reflects a new era in Israel — India economic relations,” said Minister Smotrich.“It not only provides robust protections for investors but also lays the foundation for expanded collaboration in innovation, infrastructure and digital trade.” The signing took place as part of a high-level delegation visit from Israel, led by Minister Smotrich and senior officials from Israel’s Ministry of Finance and Securities Authority.