India, Israel sign bilateral investment treaty to boost economic ties

From April 2000-2025, India’s total overseas direct investment in Israel amounted to $443 mn, while Israel’s foreign direct investment in India reached $334.2 mn between April 2000 and March 2025

The investment treaty was signed between the Finance Minister Nirmala Sitharaman and her Israeli counterpart, Bezalel Smotrich.

India and Israel on Monday signed a Bilateral Investment Treaty (BIT) in New Delhi to boost financial and economic ties between the two countries, the Union Finance Ministry said.

The treaty was signed between the Finance Minister Nirmala Sitharaman and her Israeli counterpart, Bezalel Smotrich.

“The Government of India and the Government of the State of Israel signed the Bilateral Investment Agreement in New Delhi. Union Minister for Finance and Corporate Affairs Nirmala Sitharaman and Finance Minister of Israel Bezalel Smotrich sign the BIT,” the finance ministry said in a post on X.

“A new Bilateral Investment Agreement, signed by Israel’s Minister of Finance Bezalel Smotrich and India’s Finance Minister Nirmala Sitharaman, will facilitate reciprocal investments between investors from both countries,” said Israel’s Ministry of Finance, as quoted by news agency ANI.

It added 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 new model for investment treaties.

While details of the treaty have not been revealed yet, it is expected to offer investors from Israel and India protection based on international norms, promise non-discriminatory minimum treatment, and independent arbitration. It follows Israel’s earlier BITs with over 15 countries, including the UAE and Japan.

This signing comes at a time when Smotrich is on a three-day visit to India, beginning Monday. The purpose of the visit is to strengthen economic and financial relations between Israel and India through bilateral discussions and lay the groundwork for key agreements, including a Free Trade Agreement (FTA) between the two nations, a source told news agency PTI on Sunday.

India and Israel have an annual bilateral trade of approximately $4 billion.

From April 2000 to April 2025, India’s total overseas direct investment (ODI) in Israel amounted to $443 million, while Israel’s foreign direct investment (FDI) in India reached $334.2 million between April 2000 and March 2025.