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India and Israel Sign Bilateral Investment Agreement to Boost Economic Ties

2025-09-09

The Government of India and the Government of Israel signed a Bilateral Investment Agreement (BIA) in New Delhi today, marking a significant milestone in strengthening economic relations between the two nations. The agreement was signed by Union Finance Minister Smt. Nirmala Sitharaman and Israel’s Finance Minister HE Bezalel Smotrich.

The signing ceremony was attended by senior officials from both governments. The BIA is expected to encourage bilateral investments, provide greater certainty for investors, and promote trade by ensuring transparent regulations, safeguards against expropriation, smooth transfers, compensation mechanisms, and independent arbitration for dispute resolution.

Finance Minister Sitharaman highlighted India’s reforms over the past decade that have created an investor-friendly environment, making it the world’s fastest-growing economy. She urged both sides to deepen business interactions and unlock fresh opportunities under the agreement.

Extending condolences over lives lost in a terrorist attack in Israel, she reaffirmed India’s solidarity with Israel against terrorism, citing shared civilisational values that support peace and security.

Israel’s Finance Minister emphasised the countries’ shared resilience in pursuing economic growth despite security challenges. He called for expanded collaboration in cybersecurity, defence, innovation, and high-tech sectors, alongside fintech, infrastructure, financial regulation, and digital payments.

Currently, bilateral investments between India and Israel stand at around USD 800 million, a figure expected to grow substantially with the implementation of the BIA.

The Israeli Finance Minister also extended an invitation to Sitharaman to visit Israel.

News source: PIB

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