India and Israel on Monday signed a Bilateral Investment Treaty (BIT) in New Delhi to boost financial and economic ties between the two countries, the Union Finance Ministry said. The treaty was signed between the Finance Minister Nirmala Sitharaman and her Israeli counterpart, Bezalel Smotrich.
“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, as quoted by news agency ANI.
The ministry mentioned that Israel is the first Organisation for Economic Co-operation and Development (OECD) member state with which the Indian government has fulfilled the strategic agreement after New Delhi’s new model for investment treaties.
“The agreement is expected to boost investments, provide greater certainty and protection for investors, facilitating the growth of trade and mutual investments by ensuring a minimum standard of treatment, and an independent dispute resolution mechanism through arbitration,” the finance ministry said.
It added that the agreement will include safeguards for investments – means to compensate against expropriation, transparency, and allowing uncomplicated transfer of funds and compensation for loss.
The signing takes place during this time as Smotrich is in the country on a three-day trip to India, beginning on the 15th. The visit is to build and spur economic and financial relations between Israel and India using bilateral discussions and hoping to lay the foundation for work on major agreements, including a Free Trade Agreement (FTA), a source told news agency PTI on Sunday.
India and Israel are doing around $4 billion a year in bilateral trade. India’s total overseas direct investment (ODI) in Israel was $443 million between April 2000 and April 2025, while Israel’s foreign direct investment (FDI) in India was $334.2 million between April 2000 and March 2025.
