New Delhi, September 08 (HS): The Government of India and the Government of the State of Israel signed a historic Bilateral Investment Agreement (BIA) today in New Delhi. The agreement was signed by Union Finance and Corporate Affairs Minister Nirmala Sitharaman and Israel’s Finance Minister Bezalel Smotrich, in the presence of senior delegations from both countries.

The BIA is designed to provide investors from both nations with stronger protection, greater certainty, and a transparent investment environment. Key provisions include safeguarding against expropriation, smooth transfers, compensation for potential losses, and an independent arbitration-based dispute resolution mechanism. Importantly, the agreement ensures a balance between investor protection and the sovereign right of states to regulate in public interest.

Speaking at the signing ceremony, Finance Minister Sitharaman underlined India’s sweeping reforms over the last decade that have positioned the country as the world’s fastest-growing economy and an attractive hub for global investors. She stressed the importance of strengthening business-to-business interactions to fully capitalize on the opportunities unlocked by the Agreement.

Highlighting the emotional moment during the signing, Sitharaman also conveyed condolences on the loss of innocent lives in a terrorist attack in Israel earlier today. Both Ministers underscored the shared values of democracy and civilizational ethos that bind the two nations together, along with their mutual resolve to combat terrorism.

Israel’s Finance Minister Bezalel Smotrich hailed the Agreement as a milestone in deepening economic ties, noting the two nations’ shared history of economic resilience amidst security challenges. He highlighted the potential for greater collaboration in cybersecurity, defense, innovation, and cutting-edge technologies.

Currently, bilateral investments between India and Israel stand at approximately USD 800 million. With the signing of this Agreement, both governments expect this number to rise significantly, paving the way for expanded cooperation across fintech, infrastructure development, financial regulation, and digital payment connectivity.

Echoing the spirit of the partnership, Minister Smotrich extended a formal invitation to Minister Sitharaman to visit Israel in the near future.

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Hindusthan Samachar / Jun Sarkar