India, Israel likely to sign bilateral investment agreement next week

The expected treaty may offer investors from Israel and India protection based on international norms, promises non-discriminatory minimum treatment, and independent arbitration

India is expected to sign a bilateral investment treaty with Israel during Israeli Finance Minister Bezalel Smotrich’s upcoming three-day visit to India, according to a PTI report.

 

Smotrich will be in India from September 8 to 10 and is scheduled to meet Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Housing and Urban Affairs Minister Manohar Lal Khattar. During his visit, Smotrich is also expected to visit Mumbai and Gujarat's GIFT City.

 

"The aim of this visit is to deepen Israel's economic and financial ties with India through bilateral meetings and prepare common ground for some of the key agreements, including the bilateral investment treaty (BIT) and free trade agreement (FTA)," sources told PTI.

 

 

"Both countries have been negotiating a draft bilateral investment treaty (BIT) and have concluded the negotiations. The finance ministers are expected to sign the BIT during the visit," the report stated.

 

The expected treaty may offer investors from Israel and India protection based on international norms, promise non-discriminatory minimum treatment and independent arbitration, and follows Israel’s earlier BITs with over 15 countries, including the UAE and Japan.

 

"BIT reflects both nations' shared commitment towards enhancing economic cooperation and creating a more robust and resilient investment environment. The BIT is expected to pave the way for increased bilateral investments, benefiting businesses and economies in both countries," the report added.

 

India and Israel share a strategic partnership, with annual bilateral trade amounting to nearly $4 billion.

 

Between April 2000 and April 2025, India’s cumulative overseas direct investment (ODI) in Israel stood at $443 million, while Israel’s foreign direct investment (FDI) in India during April 2000 to March 2025 totalled $334.2 million.

 

This marks the fourth visit by an Israeli minister to India this year, following earlier trips by Tourism Minister Haim Katz, Economy and Industry Minister Nir Barkat, and Agriculture and Food Security Minister Avi Dichter.