India-Israel Bilateral Investment Agreement Comes into Force, Boosting Investor Confidence
New pact aims to strengthen investment flows while balancing investor protection with sovereign policy space
The agreement was signed on September 8, 2025, in New Delhi by the Governments of the Republic of India and the State of Israel.
New Delhi: The Bilateral Investment Agreement (BIA) between India and Israel officially came into force on July 4, 2026, marking a significant milestone in strengthening economic cooperation and creating a more secure and predictable investment environment between the two countries.
The agreement was signed on September 8, 2025, in New Delhi by the Governments of the Republic of India and the State of Israel.
According to the Ministry of Finance, the BIA is designed to provide robust protection to investments and investors while preserving the sovereign right of both countries to regulate in pursuit of legitimate public policy objectives. The agreement reflects modern principles and evolving jurisprudence in international investment law.
The Government said the treaty is expected to encourage greater cross-border investment by providing investors with enhanced legal certainty and a transparent framework for investment protection, thereby deepening the economic partnership between India and Israel.
The agreement seeks to strike a balance between safeguarding investor interests and maintaining adequate policy flexibility for governments to pursue national priorities, including public welfare and regulatory objectives.
With the agreement now in force, businesses and investors from both countries are expected to benefit from a more stable investment regime, potentially leading to increased investments across sectors such as technology, innovation, manufacturing, defence, agriculture, healthcare and digital industries.
India and Israel have significantly expanded their strategic partnership over the past decade, with growing collaboration in innovation, cybersecurity, defence technologies, agriculture, water management and startup ecosystems. The new Bilateral Investment Agreement is expected to provide an additional institutional framework to support long-term investment and economic cooperation.
The Ministry of Finance has made the full text of the India-Israel Bilateral Investment Agreement available on the website of the Department of Economic Affairs.
