India-Israel bilateral investment agreement comes into force, boosting investor confidence

The India-Israel Bilateral Investment Agreement (BIA) officially came into force on Saturday, marking a major milestone in strengthening economic ties between the two countries. Signed in September 2025, the agreement aims to encourage cross-border investments by offering greater legal protection, transparency and confidence to investors from both nations.

The pact replaces the earlier 1996 investment treaty, which was terminated in 2017 as part of India's revised investment treaty framework. Israel also became the first member of the Organisation for Economic Co-operation and Development (OECD) to sign an investment agreement under India's new model treaty.

The agreement includes provisions for fair treatment of investors, protection against discriminatory practices and an independent dispute resolution mechanism through arbitration.

Officials from both countries believe the agreement will strengthen bilateral trade and investment while creating new opportunities in sectors such as technology, infrastructure, manufacturing, innovation and financial services. The BIA is expected to deepen the long-standing strategic partnership between India and Israel and provide a stable framework for businesses looking to expand across both markets.