New Delhi [India], July 4 (ANI): The Bilateral Investment Agreement (BIA) between India and Israel came into force on Saturday, marking a new phase in the economic relationship between the two countries.
The Government of the Republic of India and the Government of the State of Israel signed the agreement on Sept. 8, 2025, in New Delhi. With the agreement now in effect, it is expected to provide greater certainty for investors and deepen bilateral economic engagement, according to a press release issued by the Ministry of Finance.
The ministry described the BIA as a “landmark step toward strengthening bilateral economic relations and ensuring a secure and predictable investment climate.” It added that the agreement strikes a balance between protecting investments and investors while preserving sovereign policy space for legitimate public policy objectives.
“The BIA is robust in protection of investment and investors with respect to their investments while being flexible enough to retain sovereign policy space in line with legitimate public policy objectives, reflecting the modern principles and evolving jurisprudence of international investment law,” the release stated.
India and Israel already share strong trade and technology partnerships, particularly in defense, water, agriculture, cybersecurity, pharmaceuticals, and innovation. The BIA is expected to accelerate investment flows in these sectors by addressing investor concerns related to investment protection, dispute resolution, and regulatory clarity.
“The BIA is expected to contribute to increased cross-border investment activity and further deepen the economic partnership between India and Israel,” the release said.
The agreement comes as both economies focus on technology-driven growth and resilient supply chains. For Indian companies, it opens additional opportunities within Israel’s innovation ecosystem, particularly in deep technology, artificial intelligence, water technology, and defense. For Israeli companies, the agreement provides a structured pathway to expand in India’s large domestic market and in sectors aligned with the country’s Viksit Bharat agenda.
With the BIA now in force, both governments are expected to translate the legal framework into higher investment volumes, joint ventures, and technology collaborations in the coming months. (ANI)
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