Jerusalem, 8 September, 2025 (TPS-IL) — Israel and India deepened economic ties with the signing of a new bilateral investment agreement (BIA) in New Delhi on Monday. The accord, designed to facilitate mutual investment flows and encourage trade, was signed by Israel’s Finance Minister Bezalel Smotrich and his Indian counterpart, Nirmala Sitharaman, in a ceremony attended by senior officials from both governments.
“This is a strategic step that will open new doors for both Israeli and Indian investors, strengthen Israeli exports, and provide businesses on both sides with certainty and tools to develop in the world’s fastest-growing markets,” Smotrich said. “India is a developing economic powerhouse, and cooperation with it is a tremendous opportunity for the State of Israel.”
The agreement, hailed by Israeli officials as the first of its kind between India and a Western-oriented member of the Organisation for Economic Co-operation and Development (OECD), replaces an earlier treaty signed in 1996 that was terminated in 2017 amid India’s broader review of investment agreements. The accord aims to enhance investor confidence, protect mutual investments, and expand trade and financial cooperation.
Israel’s Ministry of Finance described the agreement as a “significant milestone in Israel-India relations,” noting that months of intensive collaboration between the Chief Economist teams of both ministries preceded the signing. “The investment agreement signed today is an important milestone in Israel-India relations, and it will serve as a significant economic growth engine,” said Dr. Shmuel Abramzon, Chief Economist at the Israeli Finance Ministry.
The agreement was also welcomed by India’s embassy in Tel Aviv. An embassy spokesperson told The Press Service of Israel, “India and Israel have cultivated a shared vision for mutual prosperity, fostering collaboration at bilateral, regional, and global levels. This strategic partnership reflects the aspirations of our peoples and drives cooperative endeavors across sectors including technology, agriculture, entrepreneurship, and workforce development.” The embassy further emphasized that initiatives like the India-Middle East-Europe Economic Corridor could offer additional opportunities to deepen trade and investment ties.
The Israeli delegation to India is led by Smotrich and includes senior officials such as Director General Ilan Rom, Accountant General Yahli Rotenberg, and Chairman of the Israel Securities Authority, Seffy Singer. Their visit aims to advance cooperation in areas such as innovation, infrastructure development, financial regulation, and digital trade. Meetings are also scheduled with Indian officials to explore the creation of a bilateral financial protocol to improve financing conditions for Israeli exporters.
“Our cooperation with the developing Indian economy has broad strategic implications,” said Rom. “This relationship places Israel in a key position in regional economic networks and opens a window to one of the world’s largest and fastest-growing markets.” Rotenberg added, “Combining forces in the areas of infrastructure, innovation, and financial market development provides a strong basis for expanding economic opportunities and deepening strategic ties between our countries.”
Smotrich and Sitharaman discussed plans for further institutional collaboration, including the potential opening of an Israeli Finance Ministry representation in India. Both ministers also agreed to continue joint work to advance cooperation through government-to-government, business-to-business, and people-to-people channels. Smotrich extended an invitation to Sitharaman for a reciprocal visit to Israel.
The agreement follows a broader trend of India signing strategic bilateral investment treaties with countries including the United Arab Emirates and Uzbekistan in recent years. Israeli officials framed the move as a historic step in Israel’s economic outreach to emerging markets, highlighting the potential for mutual benefit in trade, technology exchange, and investment.
“The agreement we signed expresses our shared vision for innovative and secure economic development,” Smotrich said. “This is not only an opportunity for our investors but also a way to strengthen the economic partnership between our nations in an increasingly interconnected global economy.”
Analysts suggest the BIA could help both countries navigate global supply chain disruptions, leverage India’s large domestic market, and capitalize on Israel’s technological expertise. By formalizing protections for investors and providing a clearer legal framework for cross-border investment, the agreement is expected to boost investor confidence and support long-term economic growth for both nations.
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