India, Israel ink pact to boost investments, strengthen ties

India and Israel on Monday signed a Bilateral Investment Agreement (BIA) aimed at boosting reciprocal investments and strengthening economic ties between the two countries.

The new agreement supports the promotion of reciprocal investments between the parties, ensuring certainty and protection for investors, and will contribute to expanding trade and investment between the two countries.

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The agreement was signed in New Delhi by Israel’s Minister of Finance Bezalel Smotrich and India’s Finance Minister Nirmala Sitharaman. It replaces the previous agreement signed in 1996, which was terminated in 2017 as part of India’s policy with reference to its investment treaties.

During their discussions, both the ministers reaffirmed the deep economic and strategic relationship between India and Israel. They emphasized cooperation in key areas such as innovation, infrastructure development, financial regulation, and digital trade services, and agreed to enhance collaboration through regional development banks.

Smotrich extended an invitation to Minister Sitharaman for a reciprocal visit to Israel. Both sides also agreed to explore the creation of a bilateral financial protocol to improve financing conditions for Israeli exporters.

Additionally, Israel is considering opening a Finance Ministry office in India to strengthen direct engagement with government and industry stakeholders.

The Israeli Finance Minister expressed appreciation to the Embassy of Israel in New Delhi for its role in facilitating the agreement.

“Their close cooperation and assistance were instrumental in making the signing of this agreement possible,” he said.

Over the course of the visit, Israeli officials are holding a series of meetings with their Indian counterparts to advance joint economic projects and deepen bilateral cooperation.

The Israeli delegation was led by the Minister, including senior officials from the Ministry of Finance and the Securities Authority: Director General Ilan Rom, Chief Economist Dr. Shmuel Abramzon, Accountant General Yahli Rothenberg, and Chairman of the Israel Securities Authority, Seffy Zinger.

Israel is the first OECD member state to sign an agreement under India’s new investment treaty model. The agreement follows intensive work over recent months between the Chief Economist’s teams at Israel’s Ministry of Finance and their counterparts in India’s Ministry of Finance.