India and Israel on Monday (September 8) formally signed a Bilateral Investment Treaty (BIT) during the visit of Israel’s Finance Minister Bezalel Smotrich. The BIT would serve as a building block for a future free trade agreement (FTA) to boost trade between the two countries.Israeli Finance Minister and India’s Minister for Finance and Corporate Affairs Nirmala Sitharaman inked the pact. Israeli minister Smotrich is currently in India from September 8 to 10 and is scheduled to meet key policymakers, including Commerce and Industry Minister Piyush Goyal. The agreement is also expected to underpin discussions on an India–Israel FTA.
???? The Government of India and Government of the State of Israel sign Bilateral Investment Agreement #BIT in New Delhi, today
???? Union Minister for Finance and Corporate Affairs Smt. @nsitharaman and Finance Minister of Israel H.E. Mr. Bezalel Smotrich sign the #BIT… pic.twitter.com/uzKQplWj6H— Ministry of Finance (@FinMinIndia) September 8, 2025
According to earlier reports, the BIT between the two countries ensures appropriate protection to Israeli investors in India and Indian investors in Israel, in light of relevant international precedents and practices.Furthermore, the agreement is expected to boost the confidence of investors by assuring a minimum standard of treatment and non-discrimination, while providing for an independent forum for dispute settlement through arbitration. The BIT also provides for protection to investments from expropriation, transparency, transfers, and compensation for losses.Also read: India looks to fast-track FTA talks to diversify exports, says Piyush GoyalIsrael has signed BITs with over 15 countries since 2000, including the UAE, Japan, the Philippines, Thailand, and South Africa.India and Israel are strategic partners, and bilateral trade between the two countries is close to $4 billion annually. Cumulative investment from India to Israel during 2000-2025 was $443 million, and Israel’s contribution to India’s foreign direct investment (FDI) during April 2000–March 2025 was $334.2 million.GIFT city visitThe Israeli finance minister Smotrich is also expected to visit India’s global financial services centre GIFT IFSC in Gandhinagar.India and Israel also hold strong potential for collaboration in the fintech sector, driven by complementary strengths—India’s large-scale digital infrastructure and financial inclusion platforms like UPI, and Israel’s global leadership in cybersecurity, blockchain, and payment technologies.Also read: India-Qatar FTA terms likely to be finalised early next month(Edited by : Vipal Durge)
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