India-Israel Bilateral Investment Agreement Enters Force, Boosting Economic Ties

The India‑Israel Bilateral Investment Agreement (BIA), signed on 8 September 2025 in New Delhi, came into force on 4 July 2026. The treaty replaces the 1996 investment treaty and aligns the framework with modern international investment law while preserving each country’s right to regulate in the public interest.

Key provisions include national‑treatment guarantees, protection against direct and indirect expropriation, free transfer of capital and profits, and a requirement that investors first use domestic courts before resorting to international arbitration. The agreement also mandates transparency of investment‑related regulations and obliges investors to comply with anti‑corruption and taxation rules.

Officials expect the BIA to encourage greater cross‑border investment, deepen cooperation in fintech, infrastructure, and digital payments, and raise the $800 million bilateral investment stock. Both India’s Finance Minister Nirmala Sitharaman and Israel’s Finance Minister Bezalel Smotrich highlighted the pact’s potential to boost business interaction and economic growth.