India-Israel Trade Ties: Bilateral Investment Treaty Signed On Sept. 8

India-Israel Trade Ties: India signed a bilateral investment treaty with Israel on Monday, Sept. 8, a move seen as boost to strengthen trade relations between the two countries. Reuven Azar, Ambassador of Israel to India, took to microblogging platform 'X' (formerly Twitter), and confirmed in a post saying, "Bilateral Investment Treaty btw Israel & India just signed!"

Reuven was seen sitting next to finance minister Nirmala Sitharaman in the picture uploaded on the 'X' post on Monday, as the two sign documents assumingly related to the trade deal. Sources told news agency PTI on Sept. 7 that India and Israel are expected to sign a BIT during the upcoming visit of Israel's Finance Minister Bezalel Smotrich this week.

The bilateral investment treaty would prepare a common ground for a free trade agreement (FTA) to boost trade between the two countries. Smotrich will be on a three-day visit to India between Sept. 8-10, during which he is expected to meet his counterpart Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Minister of Housing and Urban Affairs Manohar Lal Khattar.

Besides Delhi, the Israeli finance minister will also visit Mumbai and the GIFT City in Gandhinagar. "The aim of the visit is to deepen Israel's economic and financial ties with India through bilateral meetings and prepare common ground for some of the key agreements, including the bilateral investment treaty and free trade agreement," sources told PTI.

"Both countries have been negotiating a draft bilateral investment treaty (BIT) and have concluded the negotiations. The finance ministers are expected to sign the BIT during the visit," said the PTI report, quoting sources.

The expected treaty may offer investors from Israel and India protection based on international norms, promise non-discriminatory minimum treatment and independent arbitration, and follows Israel’s earlier BITs with over 15 countries, including the UAE and Japan.

"BIT reflects both nations' shared commitment towards enhancing economic cooperation and creating a more robust and resilient investment environment. It is expected to pave the way for increased bilateral investments, benefiting businesses and economies in both countries," sources told PTI.

India and Israel share a strategic partnership, with annual bilateral trade amounting to nearly $4 billion. Between April 2000 and April 2025, India’s cumulative overseas direct investment in Israel stood at $443 million, while Israel’s foreign direct investment in India during April 2000 to March 2025 totaled $334.2 million.

This marks the fourth visit by an Israeli minister to India this year, following earlier trips by Tourism Minister Haim Katz, Economy and Industry Minister Nir Barkat, and Agriculture and Food Security Minister Avi Dichter.