The IPA reflects a growing geoeconomic realignment that encourages investors to look beyond traditional markets toward emerging power alliances built on innovation, security, and mutual growth.
In a major development on the global economic stage, Israel and India have signed a landmark Investment Protection Agreement (IPA) aimed at strengthening bilateral trade and promoting long-term cooperation across key sectors, Reuters reports. The agreement is being hailed as a strategic shift away from traditional Western-dominated trade frameworks, emphasizing both countries’ commitment to building resilient, innovation-driven economies.
Israeli Finance Minister Bezalel Smotrich described India as a “true friend,” pointing to the deepening relationship built on shared goals of technological advancement, diversified trade, and greater geopolitical autonomy. The IPA includes legal protections for investors, shielding them from unfair treatment and capital flow restrictions.
One of the most promising areas of collaboration is technology, particularly in semiconductors. India is aiming to establish itself as a global hub for chip manufacturing, with Israeli expertise playing a crucial role. The $10 billion Adani–Tower Semiconductor plant underway in Maharashtra exemplifies this high-stakes partnership, with the potential to revamp the global supply chains.