NEW DELHI: India and Israel have signed a landmark bilateral investment treaty aimed at strengthening economic and trade ties between the two nations.
According to Israel, this is the first such agreement that India has entered into with a member of the Organisation for Economic Co-operation and Development (OECD).
The treaty was finalized during the visit of Israel’s hardline right-wing Finance Minister, Bezalel Smotrich, to New Delhi, where he met with Indian Finance Minister Nirmala Sitharaman.
Under the agreement, investors will be protected against risks such as regulatory changes or asset expropriation. It also guarantees fair treatment, non-discrimination, and provides an independent arbitration forum for dispute resolution.
Israel’s finance minister emphasized that the deal will pave the way for secure private sector investments in both countries, allowing Indian firms to invest in Israel and Israeli firms to expand into India.
Last year, bilateral trade between the two countries reached nearly $4 billion. Earlier in 2025, defense officials from both nations also agreed to strengthen military cooperation under a long-term framework.
The treaty comes amid growing international scrutiny of Israel, with some countries threatening to limit economic ties and major investment funds beginning to withdraw from Israeli assets due to the ongoing conflict in Gaza.
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