India and Israel sign a Bilateral Investment Agreement to Boost Economic Cooperation 

On September 08, 2025, the Government of India and the Government of Israel signed a Bilateral Investment Agreement (BIA) in New Delhi to boost investments and enhance economic cooperation in the two countries. The BIA was signed by Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman and H.E. Mr Bezalel Smotrich, Finance Minister of the State of Israel, in the presence of senior officers from the Israel Government and Senior Officers from India.

A Bilateral Investment Agreement is an agreement between two countries to encourage and protect foreign private investments in each other’s territories. The BIA signed by India and Israel aims to provide better protection and certainty for investors from both countries. It is designed to encourage more trade and mutual investments, ensuring a minimum standard of treatment and a dispute resolution system through arbitration.

Currently, India-Israel bilateral investments stand at around USD 800 million. With this new agreement, both countries are committed towards improving cooperation and creating an investment-friendly environment. This will also support the businesses in both countries. The agreement comes with certain provisions aimed at protecting the investments from expropriation. It will ease the transfer of money and compensation in case of losses.

At the signing event, both ministers highlighted their views and opinions regarding the agreement. Smt Nirmala Sitharaman spoke about the reforms done by India over the decade, which have helped India to become a fast-growing country in the world. She also expressed her deep condolences for the innocent lives lost in a terrorist attack in Israel on the same day. The Israeli Finance Minister also highlighted the need for more cooperation between the two countries in areas like cybersecurity, defense, innovation and high-technology sectors.

Both Ministers also highlighted their commitment to deepen cooperation in areas like fintech, digital payments, infrastructure development, and financial regulation. The Israeli Finance Minister also invited Smt. Nirmala Sitharaman to visit Israel.