What happened?
On September 8, 2025, India and Israel, signed a new Bilateral Investment Agreement (BIA) in New Delhi aimed at boosting reciprocal investments and expanding economic cooperation. Israel’s Finance Minister Bezalel Smotrich and India’s Finance Minister Nirmala Sitharaman inked the deal, making Israel the first OECD member state with which India has concluded an investment pact under its new model treaty. The agreement replaces the 1996 accord that was terminated in 2017 and is expected to enhance investor protection and certainty while driving trade and investment flows between the two nations.
Why it matters to India
Both ministers highlighted the strong economic relationship rooted in shared strategic interests and reaffirmed their commitment to work together in innovation, infrastructure development, financial regulation and digital trade. Smotrich invited Sitharaman to Israel and said his ministry is considering opening a representation in India to deepen institutional ties and advance joint economic projects. The Israeli delegation, comprising senior officials from the Ministry of Finance and the Securities Authority, is also holding meetings with Indian counterparts to further strengthen cooperation. Israel’s Ministry of Finance thanked the Embassy of Israel in New Delhi for its role in facilitating the agreement, calling the deal a significant milestone in bilateral economic relations.