India and Israel have signed a Bilateral Investment Treaty (BIT) in New Delhi to enhance economic and financial cooperation, the Finance Ministry announced recently. The agreement was signed by Finance Minister Nirmala Sitharaman and Israel’s Finance Minister Bezalel Smotrich.

Israel is the first OECD member country to sign such a treaty with India under its new investment framework. The pact will facilitate reciprocal investments, ensure transparency, protect investors from risks such as expropriation, and provide an independent arbitration mechanism for dispute resolution.

The agreement is expected to drive cross-border investments, enhance economic confidence, and strengthen bilateral trade ties.

The signing coincides with Smotrich’s three-day visit to India, during which both sides are also holding talks on advancing a Free Trade Agreement (FTA).