India And Israel Sign Landmark Bilateral Investment Agreement To Deepen Economic Ties

New Delhi marked a pivotal moment in India–Israel relations as the two nations signed a Bilateral Investment Agreement (BIA) aimed at strengthening economic cooperation and fostering cross-border investments.

The accord was signed by India’s Finance Minister Nirmala Sitharaman and Israel’s Finance Minister Bezalel Smotrich, in the presence of senior officials from both governments.

The agreement is designed to provide a stable and transparent investment climate, ensuring protections for investors through internationally recognised standards.

It establishes safeguards against expropriation, guarantees free transfer of returns, and introduces a mechanism for independent arbitration in the event of disputes.

At the same time, it strikes a balance by protecting the sovereign right of governments to regulate, preserving policy space for public interest.

Currently, bilateral investments stand at around USD 800 million, but the new framework is expected to significantly expand opportunities in sectors ranging from cybersecurity and defence to fintech, high-technology and digital payments.

This economic accord builds on the growing depth of the India–Israel partnership. In November 2023, the two countries signed a bilateral labour framework agreement enabling safe, regulated migration of Indian workers to Israel.

As of July 2025, over 6,700 Indian nationals, mainly in construction and caregiving had already arrived under this arrangement, while thousands more have been recruited through private channels.

Highlighting India’s economic trajectory, Sitharaman pointed to reforms implemented over the past decade which have positioned India as the fastest growing economy of the world, creating what she described as an increasingly investment-friendly environment.

She also called for greater business engagement to ensure both sides reap the full benefits of the agreement.

Expressing solidarity following a recent terrorist attack in Israel, Sitharaman emphasised the shared civilisational values of the two nations and their mutual commitment to global peace.

Smotrich, meanwhile, praised both economies for sustaining growth despite security challenges, stressing the importance of closer collaboration in innovation-driven fields.

Both ministers reaffirmed their commitment to advancing economic cooperation and agreed to promote and protect investments on a reciprocal basis. Smotrich also extended an invitation to Sitharaman to visit Israel in the near future.

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