India, Israel sign bilateral investment treaty to boost economic ties

India and Israel signed a Bilateral Investment Treaty (BIT) in New Delhi on September 8, 2025, to strengthen financial and economic ties, the Union Finance Ministry announced. The Union Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman, and the Finance Minister of Israel, Mr. Bezalel Smotrich, signed the agreement. Israel becomes the first Organisation for Economic Co-operation and Development (OECD) member state with which India has signed a BIT under its new investment treaty framework. The treaty is expected to facilitate reciprocal investments, provide protection based on international norms, ensure non-discriminatory minimum treatment, and offer independent arbitration. Israel has previously signed BITs with more than 15 countries, including the United Arab Emirates and Japan.
The signing coincides with Finance Minister of Israel, Mr. Bezalel Smotrich’s three-day visit to India, aimed at deepening economic and financial engagement and laying the groundwork for a potential Free Trade Agreement (FTA) between the two nations. India and Israel currently have an annual bilateral trade of approximately Rs. 35,212 crore (US$ 4 billion). Between April 2000 and April 2025, India’s total overseas direct investment (ODI) in Israel reached Rs. 3,900 crore (US$ 443 million), while Israel’s foreign direct investment (FDI) in India amounted to Rs. 2,942 crore (US$ 334.2 million) between April 2000 and March 2025. The BIT is expected to enhance investor confidence and foster long-term economic collaboration between the two countries. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.