Virendra Pandit
New Delhi: Amid US President Donald Trump’s trade and tariff tantrums and mounting global geopolitical uncertainties, India and Israel on Monday signed a reciprocal bilateral investment treaty (BIT) to boost their economic ties, the media reported.
Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich signed the agreement in the national capital.
“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.
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 are yet to go public, it is expected to offer investors from the two countries 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.
The BIT was signed soon after Smotrich’s arrival on a three-day visit to India, beginning Monday, 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 media report said.
India and Israel have an annual bilateral trade of nearly USD 4 billion.
Between April 2000 and April 2025, India’s total overseas direct investment (ODI) in Israel amounted to USD 443 million, while Israel’s foreign direct investment (FDI) in India reached USD 334.2 million.