New Delhi: In a significant move to strengthen economic cooperation, India and Israel signed a Bilateral Investment Treaty (BIT) on Monday, aiming to promote mutual investments and deepen business relations between the two nations.
The agreement was inked in New Delhi by Indian Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich.
India and Israel Ink Bilateral Investment Treaty (BIT)
Bilateral Trade Skyrockets to USD 10.77 Billion
The Indian Ministry of Finance announced the milestone on social media, highlighting the mutual commitment to enhancing economic partnerships. The BIT is expected to pave the way for greater investment flows, collaboration in high-tech sectors, and new career opportunities for professionals from both countries.
👉 The Government of India and Government of the State of Israel sign Bilateral Investment Agreement #BIT in New Delhi, today
👉 Union Minister for Finance and Corporate Affairs Smt. @nsitharaman and Finance Minister of Israel H.E. Mr. Bezalel Smotrich sign the #BIT… pic.twitter.com/uzKQplWj6H
— Ministry of Finance (@FinMinIndia) September 8, 2025
India-Israel Economic Growth: A Rapid Journey
Since establishing diplomatic relations in 1992, India-Israel economic ties have grown impressively. Bilateral trade skyrocketed from a modest USD 200 million in 1992, mostly in diamonds, to USD 10.77 billion (excluding defense) in FY 2022-23. In the current financial year (April 2023 – March 2024), trade touched USD 6.53 billion, with India exporting goods worth USD 4.52 billion and importing USD 2 billion from Israel.
India has now become Israel’s second-largest trading partner in Asia, with bilateral trade expanding beyond traditional sectors like diamonds, petroleum, and chemicals. High-tech areas such as AI, robotics, medical equipment, and electronic machinery are emerging as new pillars of cooperation.
Investment and Innovation: Shaping Future Collaboration
From April 2000 to March 2024, Indian Overseas Direct Investment (ODI) into Israel reached around USD 396 million, with companies actively entering the Israeli market via mergers, acquisitions, and local offices. A landmark example includes the acquisition of Haifa Port Company Ltd by Adani Ports and SEZ Ltd in 2022 for USD 1.18 billion.
In return, Israel has invested approximately USD 314.87 million in India, further cementing strong economic bonds. Indian firms are not just expanding their footprint but are also contributing to Israel’s innovation ecosystem.
BIT: A Win-Win for Talent and Business
The newly signed BIT promises to be a game-changer, especially for young Indian professionals aspiring to build global careers in sectors where Israel excels—AI, robotics, green technology, pharma, and healthcare. Both governments aim to support seamless talent mobility, boosting opportunities for study, training, and joint ventures.
Dr. Kaori Hayashi of the University of Tokyo emphasized the role of academic collaboration in strengthening bilateral ties, while Acumen – Sannam S4 Group – is playing a key role in implementing the Government of Japan’s initiative ‘Study in Japan from South Asia’.
The treaty marks a pivotal step toward deeper economic integration, promising transparent, secure, and mutually beneficial investment frameworks.
