India, Israel Sign Bilateral Investment Agreement to Boost Trade and Investments

India and Israel on 8 September signed a Bilateral Investment Agreement (BIA) in New Delhi, aimed at strengthening economic ties and enhancing cross-border investments.

Key Provisions of the Agreement

The Agreement seeks to provide greater certainty and protection for investors, while also encouraging mutual trade and investments. It ensures:

• A minimum standard of treatment for investors
• Independent dispute resolution through arbitration
• Safeguards against expropriation
• Transparency in regulations
• Smooth transfer of funds and compensation for losses

Balancing Investor Protection and Sovereign Rights

While focusing on investor-friendly provisions, the BIA also preserves the State’s regulatory rights. It maintains policy space for sovereign governance, ensuring that investor protections do not undermine the ability of governments to regulate in the public interest.

Current and Future Investments

Bilateral investments between India and Israel currently stand at USD 800 million. With the signing of this Agreement, both nations expect a significant boost in trade, business cooperation, and economic growth.