India and Israel Strengthen Economic Partnership with Bilateral Investment Agreement
(Photo credit: Israeli Finance Ministry)
New Delhi: Israel’s Finance Minister Bezalel Smotrich and India’s Finance Minister Nirmala Sitharaman signed a Bilateral Investment Agreement (BIA) in New Delhi, aimed at strengthening the economic partnership between the two nations. This agreement marks a new era in India-Israel economic relations, facilitating reciprocal investments and ensuring certainty and protection for investors.
The BIA supports the promotion of reciprocal investments between Israel and India, contributing to expanding trade and investment between the two countries. The agreement ensures protection for investors, guaranteeing fair treatment and access to independent arbitration for dispute resolution. It replaces the previous agreement signed in 1996, which was terminated in 2017 as part of India’s policy review of its investment treaties.
Israel is the first OECD member state to sign an agreement under India’s new investment treaty model. The signing of the BIA is a testament to the growing economic ties between Israel and India. The agreement is expected to pave the way for increased bilateral investments, benefiting businesses and economies in both countries.
During the visit, Minister Smotrich and Minister Sitharaman discussed potential areas of cooperation, including innovation, infrastructure development, financial regulation, and trade in digital services. They also agreed to collaborate within the framework of regional development banks and explore the establishment of a bilateral financial protocol to provide improved financing conditions for Israeli exporters.
Minister Smotrich invited Minister Sitharaman for a reciprocal visit to Israel, and both sides agreed to jointly examine the establishment of a bilateral financial protocol between the governments. The Minister of Finance further noted that the possibility of opening a Ministry of Finance representation in India would be examined, with a view to strengthening ties with government and market stakeholders and promoting joint economic projects.
