Prime Minister Narendra Modi and Israeli Prime Minister Benjamin Netanyahu have welcomed significant progress in bilateral trade and investment ties during their recent discussions.

They specifically applauded the signing of the India-Israel Bilateral Investment Agreement by the two nations' Finance Ministers in New Delhi last September.

This pact promises to boost investor confidence through enhanced transparency, predictable treatment of investments, and an independent dispute resolution mechanism.

The leaders highlighted the agreement's potential to drive greater two-way investments between India and Israel. Netanyahu praised India's fintech innovations, particularly the Unified Payments Interface (UPI), as a global benchmark for affordable, real-time cross-border transactions. Both sides agreed to explore integrating UPI with Israel's fast payment system to improve interoperability and deepen economic links.

Encouraging deeper Indian involvement in Israel's infrastructure sector formed a key focus. The prime ministers urged more participation from Indian firms in major upcoming projects, including metro systems, rail networks, roads, airports, desalination plants, and wastewater treatment facilities. Such collaboration could leverage India's growing expertise in these areas amid Israel's ambitious development plans.

Direct air connectivity emerged as a foundational element for elevating bilateral relations. The leaders expressed strong support for expanding flights between Tel Aviv and major Indian cities. They called on Indian and Israeli airlines to launch direct operations promptly, viewing this as essential for scaling trade, tourism, and people-to-people exchanges.

Progress on a Free Trade Area (FTA) agreement also drew praise. Both welcomed the signing of the Terms of Reference (ToR) and the first round of negotiations held in New Delhi. Committed to an early conclusion, they instructed negotiating teams to accelerate talks, anticipating the FTA will unlock new trade opportunities across diverse sectors.

Financial resilience took centre stage, with the leaders endorsing a strategic partnership in the financial-cyber domain. This initiative emphasises exchanging financial-cyber intelligence, co-developing methodologies, and conducting multilateral simulations via dedicated Financial Computer Security Incident Response Teams. Such measures aim to fortify economic stability against emerging threats.

Further financial cooperation advanced through specific pacts. An MoU between NPCI International and Israel's MASAV will explore linkages for seamless cross-border payments. The launch of the India-Israel Financial Dialogue underscores efforts to foster closer ties in banking and payments infrastructure.

Business engagement received high commendation following the successful 4th India-Israel CEOs Forum and Business Summit in Tel Aviv last November. The event facilitated robust interactions between business leaders and governments, paving the way for investments in priority sectors. An MoU on Arbitration between the Indian Council of Arbitration and the Israeli Institute of Commercial Arbitration promises smoother resolution of commercial disputes, bolstering investor trust.

In a volatile global landscape, the prime ministers reaffirmed dedication to the I2U2 quadrilateral partnership—encompassing India, Israel, the UAE, and the US. They see it as a powerful platform for trade, investment, innovation, and harnessing complementary strengths. Discussions also covered the India-Middle East-Europe Economic Corridor (IMEC), with intent to advance regional connectivity, stability, and prosperity, including Israel's prospective role.

Several new agreements underscored the broadening strategic partnership. These include an MoU on Artificial Intelligence cooperation, a Letter of Intent for an Indo-Israel Cyber Centre of Excellence in India, and an MoU between the education ministries on advancing AI in education.

A Declaration of Intent between Israel's Ministry of Innovation, Science and Technology and India's Office of the Principal Scientific Adviser targets cooperation in horizon scanning.

The leaders concluded by pledging sustained high-level engagement across governments, industries, and societies. Their shared vision centres on an enduring India-Israel partnership, powered by knowledge-driven economies to deliver a future of creativity, technology, collaboration, and mutual success.

ANI