Israel and India ink bilateral investment deal
'India is a growing economic power, and cooperation is a tremendous opportunity for Israel.'
(TIMES OF ISRAEL) Israel and India signed a bilateral agreement last week to facilitate mutual investment flows and encourage economic cooperation and trade between the two countries.
The bilateral investment agreement was signed in New Delhi in the presence of Israeli Finance Minister Bezalel Smotrich and his Indian counterpart Nirmala Sitharaman to bolster investor confidence and support smoother financial interactions between the two nations.
The two finance heads agreed to advance economic cooperation in the fields of innovation, infrastructure development, financial regulation and digital services trading.
“This is a strategic step that will open new doors for both Israeli and Indian investors, strengthen Israeli exports and provide businesses on both sides with certainty and tools to develop in the world’s fastest-growing markets,” said Smotrich.
“India is a growing economic power, and cooperation is a tremendous opportunity for Israel.”
Israel hailed the agreement as the first of its kind that India has signed with a Western-oriented economy among the countries in the Organisation for Economic Co-operation and Development. Last year, India sealed similar agreements with the United Arab Emirates and Uzbekistan.
The bilateral investment agreement provides safeguards for investors by establishing mutual protections, giving Israeli investors more certainty against, for example, regulatory changes in both countries, as well as security from expropriation. The treaty establishes conditions for fair treatment and non-discrimination, and provides a forum for independent dispute settlement through arbitration.
Bilateral relations between India and Israel have strengthened in recent years, leading to cooperation projects in agriculture, science, health, IT and telecommunications. Both Israel and India have been expressing interest in cooperation in additional areas, such as water, fintech, construction and infrastructure.
Smotrich said that the ministry is considering opening a representation in India to strengthen ties with government and private stakeholders and to promote joint economic projects.
The bilateral investment agreement is seen as preparing a common ground for advancing the ongoing negotiations for a future free trade agreement between Israel and India. Earlier this year, Economy Minister Nir Barkat led a large business delegation to New Delhi to make progress on the pact.
The moves come as US President Donald Trump is seeking to revamp plans for a proposed US-India trade corridor through Israel. The Trump administration has continued a push from its predecessor Joe Biden to build a rail and shipping corridor linking India with the Middle East, Europe and the US – an ambitious project aimed at fostering economic growth and political cooperation.
Israel’s exports to India include machinery, electrical and mechanical equipment, chemicals, optical and medical equipment, according to its Economy Ministry.