New Delhi: India and Israel have signed a Bilateral Investment Agreement (BIA) aimed at strengthening economic ties, boosting trade and providing enhanced protection for investors. The agreement was signed in New Delhi by Finance Minister Nirmala Sitharaman and Israel’s Finance Minister Bezalel Smotrich in the presence of senior officials from both governments.

The BIA introduces provisions for fair treatment of investors, independent arbitration for dispute resolution, safeguards against expropriation, transparent processes and compensation for losses. It also ensures smooth transfers while maintaining the state’s regulatory rights to preserve sovereign policy space.

Speaking at the signing, Nirmala Sitharaman said that both sides should have “more business interaction to explore opportunities of investments, to gain benefit from the Agreement.” She highlighted India’s economic reforms over the past decade, which she said have created one of the most investment-friendly environments in the world.

During the meeting, she also expressed condolences over the loss of innocent lives in a terrorist attack in Israel, acknowledging the shared civilizational values of the two countries and the common threat of terrorism.

Bezalel Smotrich said both nations share a strong background of achieving high economic growth despite security challenges. He stressed the importance of deeper collaboration in cybersecurity, defense, innovation and high-technology sectors.

Both ministers agreed to enhance cooperation in fintech, infrastructure, financial regulation and digital payments, while promoting reciprocal protection of investments. The Israeli minister also invited Nirmala Sitharaman to visit Israel.

The agreement is expected to encourage bilateral investments, which currently stand at around USD 800 million, and create new opportunities for businesses in both countries.

BI Bureau