India and Israel sign Bilateral Investment Agreement in New Delhi
India and Israel signed a Bilateral Investment Agreement (BIA) in New Delhi on 8 September 2025, signed by Finance Ministers Nirmala Sitharaman and Bezalel Smotrich.
Summary
India and Israel signed a Bilateral Investment Agreement (BIA) in New Delhi on 8 September 2025. Union Finance and Corporate Affairs Minister Nirmala Sitharaman and Israel's Finance Minister Bezalel Smotrich signed the agreement. The BIA is meant to give investors greater certainty and protection by ensuring a minimum standard of treatment and an independent dispute resolution mechanism through arbitration, along with safeguards against expropriation, transparency, and smooth transfers and compensation for losses. The government said the agreement balances investor protection with the State's regulatory rights, preserving policy space. Bilateral investment between the two countries presently stands at about USD 800 million. Both ministers also committed to cooperation in fintech innovation, infrastructure development, financial regulation and digital payment connectivity.
Key facts
- Signed
- 8 Sep 2025, New Delhi
- Signatories
- Nirmala Sitharaman (India), Bezalel Smotrich (Israel)
- Investor protection
- Minimum standard of treatment; arbitration-based dispute resolution
- Safeguards
- Against expropriation; transparency; transfers and compensation for losses
- Balance
- Preserves State's regulatory rights / policy space
- Current bilateral investment
- ~USD 800 million
- Cooperation areas
- Fintech, infrastructure, financial regulation, digital payment connectivity
Practice MCQs 4 questions
Who signed the India–Israel Bilateral Investment Agreement on behalf of Israel in New Delhi on 8 September 2025?
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Correct answer: C — Bezalel Smotrich
Israel's Finance Minister Bezalel Smotrich signed the BIA with Union Finance Minister Nirmala Sitharaman.
According to the Government of India, what is the present level of bilateral investment between India and Israel, cited at the signing of the BIA in September 2025?
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Correct answer: A — About USD 800 million
The release said bilateral investments presently stand at a total of USD 800 million.
Consider the following statements about the India–Israel Bilateral Investment Agreement signed in September 2025: 1. It provides an independent dispute resolution mechanism through arbitration. 2. It removes the host State's right to regulate in the public interest in favour of investor protection. Which of the above is/are correct?
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Correct answer: A — 1 only
The BIA provides arbitration-based dispute resolution, but the government said it balances investor protection with the State's regulatory rights, preserving policy space. So only statement 1 is correct.
Which of the following was NOT listed as an area of cooperation committed to by the Finance Ministers of India and Israel at the BIA signing in September 2025?
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Correct answer: D — Joint space exploration
The ministers committed to cooperation in fintech innovation, infrastructure development, financial regulation and digital payment connectivity; space exploration was not listed.