New Delhi, September 2025:
India and Israel have signed a Bilateral Investment Agreement aimed at strengthening economic cooperation, boosting mutual investments, and ensuring greater investor protection. The pact was signed by Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich.
Key Features of the Pact
- Enhances investor protection with safeguards against expropriation, transparent regulations, and fair compensation.
- Establishes an independent arbitration mechanism for dispute resolution.
- Ensures smooth transfer of returns and capital.
- Provides greater legal certainty, making the investment climate more robust.
Investment Potential
- Current bilateral investments: USD 800 million.
- Focus areas: Cybersecurity, defence technologies, fintech, digital payments, and high-tech industries.
- Expected to significantly boost capital inflows and business exchanges between the two nations.
Shared Vision
Both finance ministers highlighted the shared democratic and economic values of India and Israel, stressing enhanced cooperation in cyber defence, digital payment connectivity, and infrastructure development. The agreement reflects a joint commitment to economic resilience and technology-driven growth.
