India and Israel Sign Bilateral Investment Treaty to Strengthen Investments

Strategic Insights -

India and Israel signed a landmark bilateral investment treaty (BIT) on Monday to promote investments between the two nations, which currently stand at around $800 million. The treaty comes at a critical time for India, which is seeking to diversify its exports and broaden its foreign investor base in the face of growing US tariffs. The BIT, signed by Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich, is expected to provide greater certainty and protection for investors, facilitating the growth of trade and mutual investments.

Key Takeaways:

  • The bilateral investment treaty (BIT) between India and Israel aims to deepen bilateral ties and promote investments between the two nations, with a current investment level of around $800 million.
  • The treaty replaces the 1996 agreement, which was terminated in 2017 as part of India's policy to review its investment treaties.
  • The BIT includes provisions for a minimum standard of treatment and an independent dispute resolution mechanism through arbitration to provide greater certainty and protection for investors.
  • Israel invited Finance Minister Nirmala Sitharaman to visit the country, and both nations agreed to jointly examine the establishment of a bilateral financial protocol to provide improved financing conditions for Israeli exporters.
  • Both sides agreed to examine the establishment of a bilateral financial protocol to improve financing conditions for Israeli exporters.
  • The Indian finance ministry stated that the agreement will provide greater certainty and protection for investors.
  • India's total foreign direct investment (FDI) from Israel between April 2000 and June 2025 stood at $338 million, accounting for 0.05% of the total such inflows from all countries during this period.

Statistics:

  • The current level of investments between India and Israel stands at around $800 million.
  • India received $338 million in foreign direct investment (FDI) from Israel between April 2000 and June 2025.
  • The $338 million received from Israel accounts for 0.05% of the total FDI inflows from all countries during this period.

Sources:

  • "India, Israel Sign Bilateral Investment Treaty" by Our Bureau, cited on September 14, 2023 (no public date mentioned in the original text)
  • "Israel and India sign new Bilateral Investment Treaty" by the Israeli Finance Ministry, cited on September 2023 (no specific date mentioned)