In a significant step toward strengthening economic ties, the Government of India and the Government of the State of Israel signed a Bilateral Investment Agreement (BIA) today in New Delhi.
The agreement was formalised by Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, and Israel’s Finance Minister, H.E. Mr. Bezalel Smotrich, in the presence of senior officials from both nations.
The BIA marks a historic milestone in India-Israel relations, aimed at fostering mutual investments and trade, currently valued at USD 800 million. The agreement ensures a minimum standard of treatment for investors, offering greater certainty and protection through provisions such as safeguards against expropriation, transparency, smooth transfers, and compensation for losses. It also establishes an independent dispute resolution mechanism via arbitration, while balancing investor protections with the regulatory rights of both nations.
Smt. Nirmala Sitharaman highlighted India’s decade-long reforms, which have positioned the country as the world’s fastest-growing economy and created an investment-friendly environment. She emphasised the need for increased business interactions to leverage the opportunities presented by the BIA. Expressing condolences for the recent terrorist attack in Israel, she reaffirmed the shared civilizational ethos of both nations and their commitment to global peace, while acknowledging the common challenge of terrorism faced by India and Israel.
Israeli Finance Minister Bezalel Smotrich underscored the strong economic growth of both nations despite security challenges. He called for deeper collaboration in cybersecurity, defence, innovation, and high-technology sectors. Both ministers expressed a commitment to advancing cooperation in fintech innovation, infrastructure development, financial regulation, and digital payment connectivity, aiming to create a robust and resilient investment environment.
The Israeli Finance Minister extended an invitation to Smt. Sitharaman to visit Israel, signalling a desire to further strengthen bilateral ties. The BIA is expected to unlock new opportunities for businesses, drive economic growth, and enhance financial cooperation, benefiting both India and Israel.
