India, Israel to sign bilateral investment treaty this week
What's the story
India and Israel are set to strengthen their economic ties with the signing of a bilateral investment treaty (BIT) during Israeli Finance Minister Bezalel Smotrich's upcoming visit. The BIT aims to protect investors and enhance confidence through guaranteed treatment and dispute resolution. The visit will also lay the groundwork for a free trade agreement (FTA) to further boost trade between the two nations.
Diplomatic meetings
Smotrich to meet top Indian ministers during his visit
Smotrich shall be in India from September 8 to 10, during which he will meet Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Housing and Urban Affairs Minister Manohar Lal Khattar. The Israeli minister shall also visit Mumbai and the GIFT City in Gandhinagar. The main goal of this visit is to strengthen Israel's economic and financial ties with India through bilateral meetings.
Investment protection
BIT will boost investor confidence and comfort
The BIT between India and Israel promises adequate protection to investors from both countries, based on international standards and practices. It is expected to increase investor comfort and confidence by guaranteeing a minimum standard of treatment and non-discrimination. The treaty also provides for an independent forum for dispute resolution through arbitration. Since 2000, Israel has signed similar treaties with over 15 countries including the UAE, Japan, Philippines, Thailand, and South Africa.
Economic growth
Fourth visit by Israeli minister to India this year
The BIT is seen as a reflection of both nations' commitment to enhancing economic cooperation and creating a more resilient investment environment. It is expected to pave the way for higher bilateral investments, benefiting businesses and economies in both countries. This is the fourth visit by an Israeli minister to India this year, following those by Minister of Tourism Haim Katz, Minister of Economy and Industry Nir Barkat, and Minister of Agriculture and Food Security Avi Dichter earlier this year.
Trade relations
Bilateral trade between India and Israel
India and Israel share a strategic partnership with nearly $4 billion in annual bilateral trade. From April 2000 to April 2025, India's overseas direct investment (ODI) to Israel totaled $443 million while Israel's FDI into India during the same period was $334.2 million. The two countries are natural partners for growth and collaboration due to Israel's high-tech innovation capabilities and India's unmatched scale and market potential.