India and Israel on Monday signed a Bilateral Investment Treaty (BIT) in New Delhi in a move to boost financial and economic cooperation between the two countries, the Union Finance Ministry said.
Finance Minister Nirmala Sitharaman and her Israeli counterpart, Bezalel Smotrich, signed the treaty.
"The Government of India and the Government of the State of Israel agreed to sign the Bilateral Investment Agreement in New Delhi. Union Finance and Corporate Affairs Minister Nirmala Sitharaman and Israel Finance Minister Bezalel Smotrich sign the BIT," the finance ministry posted on X.
Quoting Israel's Ministry of Finance, "A new Bilateral Investment Agreement, inked by Israel's Minister of Finance Bezalel Smotrich and India's Finance Minister Nirmala Sitharaman, will ease mutual investments between investors from the two countries," reports news agency ANI.
The ministry also highlighted that Israel is the first Organisation for Economic Co-operation and Development (OECD) member state with which India has signed this strategic agreement, following New Delhi’s updated model for investment treaties.
"The pact is likely to increase investments, ensure higher certainty and protection for investors, to help increase trade and mutual investments by assuring a minimum level of treatment, and an independent mechanism of resolving disputes via arbitration," the finance ministry stated.
It also added that the treaty has safeguards against expropriation, ensures transparency, and smooth transfer of funds with compensation for loss, if any.
This signing is during Smotrich's three-day tour of India, which started on Monday. A source, speaking to PTI, said that the tour is intended to consolidate economic and financial relationships through bilateral talks and prepare the ground for major agreements, such as a Free Trade Agreement (FTA) between the nations.
India and Israel currently have an annual bilateral trade of approximately $4 billion.
Between April 2000 and April 2025, India's aggregate foreign direct investment (FDI) in Israel was worth $443 million and that of Israel's FDI in India was $334.2 million from April 2000 to March 2025.
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