India and Israel Bilateral Investment Agreement Enters Into Force

India and Israel's bilateral investment agreement (BIA), signed on 8 September 2025, became effective in early July 2026. The treaty aims to create a safer, more transparent environment for cross‑border investments, granting investors stronger protection and allowing governments flexibility for public‑interest decisions.

Key provisions include a reduced local‑remedies period for Indian investors in Israel from five to three years, the inclusion of portfolio investments such as equities, bonds and corporate debt, and a mechanism for independent international arbitration. Israel is the first OECD member with which India has signed such a pact. Current bilateral investment stands at roughly $800 million, and officials expect the agreement to stimulate a significant rise in future flows.

Finance Minister Nirmala Sitharaman said the deal will enable “industry to seize new opportunities and deepen commercial contacts,” while Israeli Finance Minister Bezalel Smotrich highlighted the agreement’s role in bringing the two economies “closer despite security challenges.”