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Israel and India Seal Landmark Bilateral Investment Treaty
8 Sep
Summary
- Israel's Finance Minister Smotrich to visit India from Sept 8-10
- India and Israel to sign Bilateral Investment Treaty (BIT) during the visit
- BIT to pave way for future Free Trade Agreement (FTA) between the countries
In a move to deepen economic and financial ties, Israel's Finance Minister Bezalel Smotrich is scheduled to visit India from September 8-10, 2025. During his three-day trip, Smotrich is expected to meet with his Indian counterpart Nirmala Sitharaman, as well as Commerce and Industry Minister Piyush Goyal, and Minister of Housing and Urban Affairs Manohar Lal Khattar.
The primary focus of Smotrich's visit is to sign a Bilateral Investment Treaty (BIT) between India and Israel. The two countries have been negotiating the draft BIT, and the negotiations have now been concluded. The BIT is expected to provide appropriate protection to Israeli investors in India and Indian investors in Israel, in line with relevant international practices.
The BIT is seen as a crucial step towards enhancing economic cooperation and creating a more robust investment environment between the two nations. It is likely to increase the comfort level and boost the confidence of investors by assuring a minimum standard of treatment and non-discrimination, while also providing for an independent forum for dispute settlement through arbitration.
Experts believe the BIT will pave the way for increased bilateral investments, benefiting businesses and economies in both countries. It is also expected to be a precursor to a future Free Trade Agreement (FTA) between India and Israel, further boosting trade between the two strategic partners, which currently stands close to $4 billion annually.
