India, Israel likely to sign bilateral investment treaty next week

According to sources, India and Israel are likely to sign a bilateral investment treaty during the upcoming visit of Israeli Finance Minister Bezelle Smotrich this week, while the basis for a free trade agreement (FTA) has been formed to promote trade between the two countries.

Mr. Smotrich will be on a three -day visit to India from 8 to 10 September next week, during which he will meet Union Finance Minister Nirmala Sitarman, Commerce and Industry Minister Piyush Goyal and Housing and Urban Affairs Minister Manohar Lal Khattar.

Apart from this, Israeli Finance Minister will also visit Mumbai and Gift City in Gandhinagar.

“The trip aims to deepen Israel’s economic and financial relations with India through bilateral meetings and to formulate a general basis for some major agreements including the Bilateral Investment Treaty (BIT) and the Free Trade Agreement (FTA),” said sources. PTI In Jerusalem,

“Both countries are negotiating on the draft of a bilateral investment treaty (BIT) and concluding the conversation. Finance ministers are expected to sign the BIT during the journey.” Bit between the two countries assures proper security to Israel and Indian investors in light of relevant international examples and practices.

By providing for an independent platform for dispute disposal through arbitration, there is a possibility of promoting investors confidence by increasing the level of comfort and assuring the minimum standard of treatment and non-discrimination.

Israel has signed bits with more than 15 countries since 2000, including UAE, Japan, Philippines, Thailand and South Africa.

One of the sources of the sources said, “Bit shows the shared commitment of the two countries to increase economic cooperation and create a more strong and flexible investment environment. Bit is expected to pave the way to increase bilateral investments to benefit businesses and economies in both countries.”

This is the fourth visit by any Israeli minister in India this year.

Israeli Tourism Minister Ham Katz, Economy and Industry Minister NIR Barkat and Agriculture and Food Safety Minister AV DITIRAI visited India earlier this year.

India and Israel are strategic partners, and bilateral trade between countries is close to $ 4 billion annually.

The cumulative ODI from India to Israel during the period from April 2000 to April 2025 was $ 443 million, and Israel’s direct FDI in India during the period of April 2000 – March 2025 was a direct FDI of $ 334.2 million in India.

As active members of institutions such as the World Bank and the Asian Development Bank, the two countries can cooperate the multilateral development bank (MDB)-backed projects or support the joint initiative in the third countries, especially in the global South.