New Delhi- India and Israel on Monday signed a Bilateral Investment Agreement aimed at providing stronger protection and certainty for investors, paving the way for deeper trade and investment ties between the two nations.
The pact was signed by Indian Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich.
According to an official statement, the agreement marks a “historic milestone” in bilateral relations and is expected to boost investments, ensure a minimum standard of treatment for investors, and establish an independent arbitration-based dispute resolution mechanism. It also includes safeguards against expropriation, guarantees transparency, smooth transfers, and compensation for losses — while still preserving the states’ right to regulate in the public interest.
Currently, bilateral investments between India and Israel stand at around $800 million. The agreement is expected to significantly expand this figure, benefiting businesses and economies on both sides.
Sitharaman stressed the need for greater business interaction to unlock investment opportunities, highlighting India’s decade-long reform journey that has made it the world’s fastest-growing economy and created a more investor-friendly environment. She also extended condolences for the lives lost in a terrorist attack in Israel and underlined the shared civilizational values and mutual solidarity of both nations in combating terrorism.
Her Israeli counterpart, Smotrich, acknowledged the resilience of both economies despite security challenges and called for deeper collaboration in cybersecurity, defence, innovation, and high-tech sectors. Both ministers also emphasized cooperation in fintech, infrastructure development, financial regulation, and digital payment connectivity.
The Israeli Finance Minister further invited Sitharaman to visit Israel, reaffirming the two countries’ commitment to strengthening economic and financial ties.
With inputs from IANS