India, Israel ink key pact

In a significant step towards strengthening economic ties, India and Israel on Monday signed a Bilateral Investment Agreement (BIA) in New Delhi, aimed at facilitating reciprocal investments between the two countries.

The agreement, signed by Finance and Corporate Affairs Minister Nirmala Sitharaman and Israel’s Finance Minister Bezalel Smotrich at the Ministry of Finance, replaces a 1996 pact that was terminated in 2017 as part of India’s broader review of its investment treaties. Senior officials from both sides attended the signing ceremony.

According to the Israeli Finance Ministry, the new BIA will promote and safeguard reciprocal investments, ensure greater certainty and protection for investors, and contribute to expanding trade and investment between the two nations. It also noted that Israel’s Finance Ministry is considering opening a representation office in India to strengthen ties with government and market stakeholders and promote joint economic projects.

India’s Finance Ministry said the agreement is expected to boost bilateral investments, currently valued at $800 million, by ensuring a minimum standard of treatment, transparency, safeguards against expropriation, smooth transfer of funds, compensation for losses and access to independent arbitration for dispute resolution.

Sitharaman underlined that both sides must enhance business engagement to fully leverage the benefits of the new agreement.