India and Israel on Monday signed a landmark Bilateral Investment Agreement (BIA) in New Delhi, marking a significant step forward in strengthening economic and strategic ties between the two countries.

The new agreement was signed by Israel’s Minister of Finance Bezalel Smotrich and India’s Finance Minister Nirmala Sitharaman, with both sides hailing it as a milestone that will expand reciprocal investments, strengthen institutional partnerships, and provide a framework for deeper economic cooperation.

According to an official statement released by Israel’s Ministry of Finance, this deal makes Israel the first OECD member state with which India has signed an investment treaty under its new model Bilateral Investment Treaty (BIT) framework.

It replaces the earlier agreement signed in 1996, which had been terminated in 2017 as part of India’s broader restructuring of its international investment treaty regime.

The newly concluded agreement provides investors from both nations with greater legal certainty, protection, and dispute-resolution mechanisms while encouraging new flows of trade and capital.

Officials stated that the negotiations leading to the accord involved months of intensive collaboration between the Chief Economist’s teams at Israel’s Ministry of Finance and their counterparts in India, underscoring the political will in both capitals to deepen their partnership in the economic sphere.

Beyond the immediate provisions of reciprocal investment guarantees, the leadership of both ministries highlighted how the pact is anchored in the wider strategic relationship that India and Israel share, with expanding defence, innovation, digital, and financial cooperation forming vital pillars.

During the signing ceremony, ministers Smotrich and Sitharaman reaffirmed their governments’ intent to enhance cooperation in critical areas such as innovation ecosystems, infrastructure development, financial sector regulation, and digital trade platforms.

Both sides also committed to exploring collaborative engagement with regional development banks, an initiative that could broaden financing avenues for joint cross-border projects. In addition, discussions are already underway on establishing a bilateral financial protocol designed to improve financing conditions for Israeli exporters operating in the Indian market.

Minister Smotrich also conveyed that Israel’s Ministry of Finance is considering opening a permanent institutional representation in India to facilitate joint projects, ease government-to-government coordination, and ensure effective policy alignment for future ventures.

The high-level delegation accompanying Smotrich included Israel’s Director General of the Ministry of Finance Ilan Rom, Chief Economist Dr. Shmuel Abramzon, Accountant General Yahli Rothenberg, and Chairman of the Israel Securities Authority Seffy Zinger.

The delegation’s visit, according to officials, is structured to include a series of intensive meetings with Indian counterparts across financial, regulatory, and trade institutions, aimed at broadening the scope of cooperation and addressing regulatory harmonisation.

The expanded agenda for engagement suggests not just an economic cooperation framework but also a deeper commitment to institutional and regulatory dialogue, strengthening the long-term sustainability of business and investment ties.

Smotrich also extended a formal invitation to Finance Minister Sitharaman to undertake a reciprocal visit to Israel, signalling a continuity of engagement at the leadership level and an intent to further operationalise the new framework in upcoming bilateral meetings.

The Israeli Ministry of Finance emphasised that this agreement was achieved with the support and close coordination of the Embassy of Israel in New Delhi, whose efforts were described as instrumental in bridging negotiations, facilitating dialogue, and aligning policy priorities.

This reaffirmation of embassy-level cooperation reflects the broader multidimensional approach underpinning India-Israel ties, spanning strategic, technological, and now institutional economic collaboration.

By concluding this Bilateral Investment Agreement, India and Israel have not only updated a long-outdated framework but also signalled their intent to anchor future cooperation in a secure, predictable, and innovation-driven investment environment.

The agreement is expected to unlock new avenues for business in sectors ranging from hi-tech innovation and fintech to large-scale infrastructure and digital ecosystems, while fostering stronger government-to-government and business-to-business linkages.

Above all, it consolidates Israel’s role in India’s expanding network of economic partnerships under its reformed investment treaty regime, and it positions the bilateral relationship as an increasingly strategic pillar of economic diplomacy in Asia and the Middle East.

Based On ANI Report