In a major milestone for economic collaboration between Israel and India, Finance Ministers from both nations signed a groundbreaking Bilateral Investment Agreement (BIA) today in New Delhi. The agreement marks a significant step forward in bilateral economic relations and positions Israel as the first OECD country to sign such a treaty under India’s new investment model. The signing ceremony was led by Bezalel Smotrich, Israel’s Minister of Finance, and Nirmala Sitharaman, India’s Minister of Finance. The agreement is designed to facilitate reciprocal investments, provide greater certainty and protection for investors, and foster increased trade and financial cooperation.
The new BIA replaces the 1996 investment treaty, which was terminated by India in 2017 amid a broader policy shift toward renegotiating its international investment agreements based on a new framework. “This agreement reflects a new era in Israel — India economic relations,” said Minister Smotrich.“It not only provides robust protections for investors but also lays the foundation for expanded collaboration in innovation, infrastructure and digital trade.” The signing took place as part of a high-level delegation visit from Israel, led by Minister Smotrich and senior officials from Israel’s Ministry of Finance and Securities Authority.
The delegation includes Ilan Rom, Director General of the Ministry of Finance, Dr Shmuel Abramzon, Chief Economist, Yahli Rothenberg, Accountant General, Seffy Zinger, Chairman of the Israel Securities Authority.
The group is engaged in a series of working meetings with Indian counterparts aimed at deepening bilateral cooperation in economic policy, financial regulation, and investment promotion. In their meeting, the ministers reaffirmed their commitment to a shared economic vision rooted in strategic interests and mutual growth. Discussions focused on facilitating innovation and infrastructure development, advancing digital trade and financial regulation, enhancing collaboration within regional development banks, and exploring a bilateral financial protocol to support Israeli exporters through improved financing mechanisms.
Minister Smotrich also proposed opening an Israeli Ministry of Finance representation in India to strengthen engagement with Government and private sector stakeholders. Additionally, he extended an invitation to Minister Sitharaman to visit Israel for a reciprocal high-level meeting. This BIA is seen as a major diplomatic and economic achievement, underscoring the growing strategic partnership between Israel and India.
It comes after months of collaborative efforts between the Chief Economist teams of both countries’ finance ministries. Minister Smotrich expressed his gratitude to the Embassy of Israel in New Delhi for its “dedicated efforts and invaluable support,” noting that its work was instrumental in realizing the agreement. he agreement is expected to unlock new opportunities for businesses and investors in both countries and serve as a model for future partnerships between India and other OECD member States.