India and Israel Ink Investment Treaty
India and Israel have signed a Bilateral Investment Agreement aimed at boosting trade and strengthening investor confidence. The treaty was endorsed by Finance Minister Nirmala Sitharaman and Israeli Finance Minister Bezalel Smotrich, marking a key milestone in economic cooperation.
First OECD Partner under New Model
Israel has become the first OECD country to sign a strategic investment treaty with India under New Delhi’s updated investment treaty framework. This move reflects India’s intent to expand partnerships beyond traditional allies.
Protections for Investors
The agreement provides a framework of safeguards for investors, including protection against expropriation, transparent dispute resolution through arbitration, and measures to ensure security of investments. Current bilateral investment, valued at around $800 million, is expected to rise under the new framework.
Exploring Broader Cooperation
Alongside the treaty, Smotrich and Commerce Minister Piyush Goyal held discussions on expanding collaboration in infrastructure, innovation, fintech, and digital services. Both sides also signaled interest in moving towards a Free Trade Agreement in the future.
