Israeli Finance Minister Bezarel Smotrich visited New Delhi on Monday to finalize a Bilateral Investment Agreement (BIA) with India’s Finance Minister Nirmala Sitharaman.
The Israeli Treasury hailed the agreement as a “significant milestone” in the relationship between Israel and India.
“This is a strategic step that unlocks new opportunities for investors from both countries, strengthens Israeli exports, and provides the tools needed to tap into one of the fastest-growing markets in the world,” remarked Smotrich.
He also mentioned, “India represents a developing economy, and partnering with it is a substantial opportunity for Israel.”
“The agreements we are signing embody a shared vision for safe and innovative economic growth. This is not just about investment, but also reinforces partnerships between nations in a world that is becoming increasingly interlinked,” he added.
Iran Rom, a member of Smotrich’s delegation and director at the Israeli Ministry of Finance, noted, “Cooperation with developing economies like India has significant strategic implications.” Another delegate, Yahli Rotenberg, emphasized that this relationship positions Israel strategically within the regional economic network, allowing access to one of the largest and quickest-growing markets globally.
The Indian Embassy in Tel Aviv stated that India and Israel “share a common vision of mutual prosperity and encourage collaboration on bilateral, regional, and global fronts.” The embassy highlighted that this strategic partnership aligns with the aspirations of the people, fostering cooperation in sectors such as technology, agriculture, entrepreneurship, and workforce development.
Historically, India signed over 80 bilateral agreements with various countries from 1994 to 2015, though many were reviewed and ultimately canceled. The newly established BIA is set to replace and enhance prior trade agreements. The Israeli Treasury aims to strengthen its financial ties, providing better support for exports to India.
Additionally, India is in the process of updating many older bilateral agreements to align with similar policies. This agreement with Israel marks the first new bilateral contract India has signed with OECD members, which includes many of the world’s major economic powers.
India is also negotiating a bilateral trade agreement with the United States, a process complicated by past tariffs. India’s Finance Minister Sitharaman stated that discussions with the U.S. are “ongoing.”
