India and Israel signed a bilateral investment treaty (BIT) on September 8 to boost trade and economic cooperation. Israel’s Ambassador to India Reuven Azar confirmed the development on X with a picture of him sitting beside Finance Minister Nirmala Sitharaman during the signing.
The treaty lays the foundation for a future free trade agreement (FTA). Israeli Finance Minister Bezalel Smotrich began a three-day visit to India on September 8. He will meet Sitharaman, Commerce Minister Piyush Goyal, and Housing Minister Manohar Lal Khattar. His schedule also includes stops in Mumbai and GIFT City in Gandhinagar.
Officials said the BIT will give investors from both countries protection under international norms. It promises fair treatment and allows independent arbitration. Israel already has similar treaties with nations like Japan and the UAE. Annual trade between the two countries stands close to $4 billion. From April 2000 to April 2025, India invested $443 million in Israel, while Israeli investment in India reached $334.2 million.
