Union Finance Minister Nirmala Sitharaman and Israeli Finance Minister Bezalel Smotrich signed a Bilateral Investment Agreement (BIA) in New Delhi on September 8, 2025. Israel becomes the first OECD member state to sign a BIT with India under its new investment treaty framework. The agreement covers innovation, infrastructure, financial regulation, and digital services. Current bilateral trade stands at approximately USD 4 billion annually. The treaty is aimed at providing greater certainty and legal protection to investors from both countries and is expected to significantly boost cross-border investments.
India and Israel Sign Bilateral Investment Agreement
AQuick answer
India and Israel signed a Bilateral Investment Agreement (BIA) in New Delhi. Israel becomes the first OECD nation to sign a BIT with India under the new treaty framework, aiming to boost bilateral investments beyond the current USD 4 billion trade.
Key facts
- India and Israel signed a Bilateral Investment Agreement (BIA) in New Delhi.
- Israel is the first OECD nation to sign a BIT with India under new framework.
- Current bilateral trade stands at approximately USD 4 billion.
- Agreement aims to boost investments beyond existing trade volumes.
- Treaty provides legal protections for investors from both countries.
- Fintech innovation, infrastructure development, financial regulation, digital payment connectivity, cybersecurity, defence, innovation, and high-technology sectors were highlighted for deeper cooperation.
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CoverageInternationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePress Information Bureau / Times of Israel
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Linked questionMedium
Israel is the first member of which organisation to sign a Bilateral Investment Treaty with India under its new framework?
Explanation · Correct answer D
Israel became the first OECD member state to sign a Bilateral Investment Treaty with India under its new investment treaty framework.
Source: Press Information Bureau / Times of Israel
Frequently asked questions
What is the Bilateral Investment Agreement (BIA) signed between India and Israel?
India and Israel signed a Bilateral Investment Agreement (BIA) in New Delhi to provide legal protections for investors from both countries and boost bilateral investments beyond the current USD 4 billion trade.
Why is Israel's BIA with India historically significant?
Israel became the first OECD (Organisation for Economic Co-operation and Development) nation to sign a Bilateral Investment Treaty (BIT) with India under India's new Model BIT framework, marking a milestone in India's international investment diplomacy.
What is the current level of bilateral trade between India and Israel?
Current bilateral trade between India and Israel stands at approximately USD 4 billion. The BIA aims to boost investments beyond this existing trade volume by offering legal security to investors.
Which sectors have been identified for growth under the India-Israel BIA?
Fintech innovation, infrastructure development, financial regulation, digital payment connectivity, cybersecurity, defence, innovation, and high-technology were highlighted as areas for deeper India-Israel economic cooperation around the BIA.
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