India and Israel have taken a big step forward in their economic ties by signing a key Bilateral Investment Agreement in New Delhi. This deal promises to make investing between the two countries safer and more predictable, helping businesses grow and thrive.
The agreement was inked by India’s Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich. It’s a game-changer for India-Israel relations, aimed at boosting mutual investments and trade. As per an official statement, the pact ensures fair treatment for investors, sets up an independent arbitration system for disputes, and protects against things like expropriation. It also promotes transparency, easy fund transfers, and fair compensation for any losses. Importantly, it strikes a balance between shielding investors and giving governments the space to make their own rules.
This move shows both nations’ dedication to stronger economic ties and a tougher investment landscape. Right now, bilateral investments between India and Israel stand at around $800 million, and this agreement could ramp that up, benefiting companies and economies on both sides.
Finance Minister Sitharaman highlighted the need for more business talks to spot investment opportunities and make the most of this deal. She also shared how India’s reforms over the past decade have turned it into the world’s fastest-growing major economy, creating a welcoming spot for investors.
In a heartfelt moment, Sitharaman offered condolences for the innocent lives lost in a terrorist attack in Israel on the same day. She pointed out the shared values of India and Israel that contribute to global peace, and both ministers recognized the common fight against terrorism, standing in solidarity.
Israel’s Finance Minister Bezalel Smotrich noted the strong parallels between the two countries—both achieving impressive economic growth amid security hurdles. He called for deeper teamwork in areas like cybersecurity, defense, innovation, and high-tech sectors.
The ministers agreed to push economic cooperation in fintech innovation, infrastructure, financial regulations, and digital payments. They committed to reciprocal promotion and protection of investments to strengthen India-Israel economic partnership.
Finally, Smotrich invited Sitharaman to visit Israel, signaling even warmer ties ahead.
