Article – India–Israel Bilateral Investment Treaty (BIT)

Jai Siya Ram

Overview: India–Israel Bilateral Investment Treaty (BIT)

What’s been signed?
India and Israel have formalized a Bilateral Investment Agreement (BIA)—also referred to as a Bilateral Investment Treaty (BIT)—aimed at strengthening economic cooperation and providing a robust framework for cross-border investments.
Who signed it?
The treaty was signed in a ceremony featuring Finance Minister Nirmala Sitharaman and Israeli Finance Minister Bezalel Smotrich, along with senior officials from both governments.
Significance & Future Outlook:
This agreement marks a key strategic shift—it is Israel’s first OECD-member’s strategic agreement under India’s updated investment treaties framework. It not only boosts investor confidence but also lays the groundwork for a potential Free Trade Agreement (FTA) in the future.
Current Investment Landscape:
The BIT comes at a time when bilateral investments between India and Israel stand at approximately $800 million. The treaty is expected to significantly enhance mutual investment flows.

What’s the deal?
In April 2025, India and Israel signed an agriculture cooperation agreement signed by India’s Agriculture Minister Shivraj Singh Chouhan and Israel’s Minister of Agriculture, Avi Dichter.
Focus Areas:
Collaboration covers soil & water management, mechanization, post-harvest tech, animal husbandry, mechanized farming, seed improvement, R&D, and centers of excellence. A five-year joint seed improvement plan was also agreed upon.

The Indian Union Cabinet approved an MoU with Israel to deepen cooperation in the oil and gas sector, including investments, technology transfer, joint studies, capacity building, and startup collaboration.

India is set to sign an MoU with Israel (and Saudi Arabia) to advance critical mineral capabilities—specifically, potassium extraction from seawater and integration of AI-based mining technologies.

A bilateral tech initiative dubbed the Israel–India Innovation Initiative Fund is underway, with both countries committing $4 million annually over five years (total $40 million) to foster joint innovation.

Defence Secretary Rajesh Kumar Singh and Israel’s DG of Defence agreed to institutionalize and deepen defence collaboration through a formal framework.

India and Israel are deepening their partnership across multiple sectors:

Economically, the BIT promises new investment stability, and the agriculture, energy, and resource MoUs lay a foundation for enhanced trade and technology transfer.
Strategically, innovation, defense ties, and mining cooperation reflect long-term alignment.
Forward-looking, all agreements collectively offer a robust blueprint for future expansion—even into an FTA.