The accord, designed to facilitate mutual investment flows and encourage trade, was signed by Israel’s Finance Minister Bezalel Smotrich and his Indian counterpart, Nirmala Sitharaman, in a ceremony attended by senior officials from both governments.
“This is a strategic step that will open new doors for both Israeli and Indian investors, strengthen Israeli exports, and provide businesses on both sides with certainty and tools to develop in the world’s fastest-growing markets,” Smotrich said. “India is a developing economic powerhouse, and cooperation with it is a tremendous opportunity for the State of Israel.”
The agreement, hailed by Israeli officials as the first of its kind between India and a Western-oriented member of the Organisation for Economic Co-operation and Development (OECD), replaces an earlier treaty signed in 1996 that was terminated in 2017 amid India’s broader review of investment agreements. The accord aims to enhance investor confidence, protect mutual investments, and expand trade and financial cooperation.
Israel’s Ministry of Finance described the agreement as a “significant milestone in Israel-India relations,” noting that months of intensive collaboration between the Chief Economist teams of both ministries preceded the signing. “The investment agreement signed today is an important milestone in Israel-India relations, and it will serve as a significant economic growth engine,” said Dr. Shmuel Abramzon, Chief Economist at the Israeli Finance Ministry.
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