The Bilateral Investment Agreement (BIA) between India and Israel came into force on Saturday, marking a significant step towards strengthening economic ties and promoting cross-border investments between the two countries.
The agreement, signed in New Delhi on 8 September 2025, officially took effect on 4 July 2026, according to the Ministry of Finance.
The pact seeks to provide a secure, transparent and predictable framework for investors from both countries while safeguarding their investments. It also aims to balance investor protection with the government's right to regulate in pursuit of legitimate public policy objectives, in line with evolving international investment law.
The government said the agreement reflects modern principles of investment governance by offering robust protection for investments and investors without compromising sovereign policy space.
Officials expect the BIA to encourage greater bilateral investment flows and strengthen the economic partnership between India and Israel by enhancing investor confidence.
The agreement is expected to facilitate increased cross-border investment activity across sectors, supporting broader economic cooperation between the two countries.
India and Israel have steadily expanded their strategic and economic engagement in recent years, with cooperation spanning technology, innovation, agriculture, defence and trade. The implementation of the investment pact is expected to provide an additional impetus to bilateral commercial relations by offering a stable legal framework for investors. |
