- India-Israel BIT signed on September 8, 2025, to boost economic ties.
- Treaty ensures investor protection, arbitration, and paves way for FTA.
- Bilateral trade at $4 billion; Indian investments in Israel at $443 million.
India and Israel have signed a Bilateral Investment Treaty (BIT), which will facilitate improved economic relations and serve as a framework for a potential free trade agreement (FTA), India's Ministry of Finance said. The paperwork was signed by Finance Minister Nirmala Sitharaman and his Israeli counterpart Bezalel Smotrich during the latter's three-day trip to India (September 8-10).
Israel is the first OECD country, to sign a treaty under India's new investment model framework. The BIT is lined to provide assurances to investors by ensuring fair treatment, non-discrimination, independent arbitration of disputes, as well as protection against expropriation and free transfer of capital.
Smotrich will hold meetings with Commerce Minister Piyush Goyal and Housing Minister Manohar Lal Khattar, and then visit Mumbai and GIFT City in Gandhinagar. The treaty was signed following the conclusion of negotiations.
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It will support bilateral investments, which have included $443 million in investments from India to Israel, and $337.77 million in FDI from Israel to India from 2000 to 2025. The annual bilateral trade is nearly $4 billion. Both countries are looking to establish joint ventures with Multilateral Development Banks such as the World Bank and Asian Development Bank through the Global South.
This is the fourth ministerial visit from Israel to India in 2025 after Tourism Minister Haim Katz, Economy Minister Nir Barkat, and Agriculture Minister Avi Dichter, highlighting the strengthening strategic partnership. The BIT demonstrates both countries' commitment to create a strong investment environment, increase economic cooperation, and facilitate businesses.