India, Israel Sign Investment Pact To Boost Trade And Investor Protections

(MENAFN- Live Mint) NEW DELHI: India and Israel have signed a bilateral investment agreement to strengthen investor protections and create a framework for expanding trade and investment between the two nations, the Ministry of Finance said in a statement Monday.

The pact was signed in New Delhi by finance minister Nirmala Sitharaman and her Israeli counterpart, Bezalel Smotrich.

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According to the statement, the agreement will“provide greater certainty and protection for investors, facilitating growth of trade and mutual investments by ensuring a minimum standard of treatment, and an independent dispute resolution mechanism through arbitration.”

It also includes safeguards against expropriation, provisions for transparency, and rules to ensure smooth transfers and compensation for losses.

Both ministers emphasized their commitment to advancing cooperation in fintech innovation, infrastructure development, financial regulation, and digital payment connectivity. The ministry noted the pact reflects the two countries' shared aim of building a more resilient investment environment alongside boosting trade and capital flows.

The agreement is expected to pave the way for increased bilateral investments, which currently total about $800 million.“Both sides should have more business interaction to explore opportunities for investments and gain benefits from the agreement,” the statement said quoting Sitharaman.

Trade between India and Israel has evolved into a dynamic partnership, leveraging India's scale and Israel's technology strengths. In FY25, India exported goods worth $2.15 billion to Israel, while imports totalled $1.61 billion, as per commerce ministry data.

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Key exports included pearls, engineering goods, rice, electronics, ceramics, cotton, aluminium products, and telecom instruments. Imports were led by semi-precious stones, electronic components, fertilizers, agro-chemicals, and engineering goods.

During her meeting with Smotrich, Sitharaman highlighted the reforms undertaken in India over the past decade. She also expressed condolences over the loss of lives in a terrorist attack in Israel the same day, noting the“shared value of the civilizational ethos” that binds the two countries in their contribution to global peace.

Both ministers acknowledged the threats of terrorism faced by their nations and expressed solidarity, according to the statement.

Smotrich, in turn, underscored the ability of India and Israel to sustain strong economic growth despite security challenges, calling for deeper collaboration in cybersecurity, defence, innovation, and high-technology sectors.

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