The India-Israel Bilateral Investment Agreement entered into force on Saturday, opening a fresh phase in economic relations between the two countries.
Signed in New Delhi and Tel Aviv on 8 September 2025, the pact is expected to give investors greater certainty and to expand bilateral economic cooperation, according to a finance ministry statement.
Officials described the agreement as a significant move to reinforce economic ties and to establish a stable and predictable investment environment. The text balances investor protection with the right of each side to pursue legitimate public policy goals.
The ministry noted that the agreement offers strong safeguards for investments and investors while remaining flexible enough to preserve sovereign policy space, in line with current international investment standards.
India and Israel already maintain close trade and technology links in defence, water management, agriculture, cybersecurity, pharmaceuticals and innovation. The new pact is intended to encourage further investment in these areas by clarifying rules on protection, dispute settlement and regulation.
The ministry added that the agreement should increase cross-border investment and deepen the overall economic partnership.
Separately, the two governments plan to restart formal talks on a free trade agreement after July, with the next round scheduled in Tel Aviv. Negotiations, which began in 2010, have proceeded in stages; terms of reference were signed in November 2025.
Experts recommend that India ensure its priorities on intellectual property, defence technology transfer, government procurement, data rules, professional mobility, farm market access and rules of origin are addressed.
Last month a roundtable organised by the India Israel Centre and the Jindal Centre for Israel Studies called for closer collaboration in defence, culture, technology and trade.
