India and Israel today signed a landmark Bilateral Investment Agreement (BIA) aimed at strengthening reciprocal investments and expanding trade ties between the two nations.
The agreement was signed in New Delhi on September 8 by India’s Finance Minister Nirmala Sitharaman and Israel’s Finance Minister Bezalel Smotrich, who is leading a high-level delegation to India.
First OECD nation under India’s new treaty model
Israel has become the first OECD member state to sign an investment pact under India’s new model treaty framework. The BIA replaces the earlier investment treaty signed in 1996, which was terminated in 2017 as part of India’s policy overhaul on such agreements.
Officials said the new agreement provides certainty and protection for investors while promoting cross-border investments in key sectors, including innovation, infrastructure development, financial regulation, and digital services.
Deepening strategic and economic cooperation
During their talks, both ministers underlined the “profound economic relations” between India and Israel, built on shared strategic interests. They also agreed to cooperate through regional development banks and to explore the creation of a bilateral financial protocol to improve financing conditions for Israeli exporters.
Minister Smotrich also extended an invitation to Sitharaman for a reciprocal visit to Israel, while noting that Israel’s Finance Ministry is considering establishing a representation office in India to bolster institutional and market linkages.
High-level delegation meetings
The Israeli delegation includes top finance officials, among them Director General Ilan Rom, Chief Economist Dr. Shmuel Abramzon, Accountant General Yahli Rothenberg, and Israel Securities Authority Chairman Seffy Zinger. They are holding working-level meetings with Indian counterparts to advance cooperation across sectors.
Smotrich credited the Embassy of Israel in New Delhi for its instrumental role in facilitating the agreement, calling it a “significant milestone” in bilateral economic relations.