Strategic Bilateral Investment Deal Signed in New Delhi

On September 8, 2025, Israel and India formalized a bilateral investment agreement aimed at facilitating reciprocal investments and fostering deeper economic cooperation. The signing took place in New Delhi, with Israel’s Finance Minister Bezalel Smotrich and India’s Finance Minister Nirmala Sitharaman present.

The agreement is designed to strengthen investor confidence, streamline cross-border financial interactions, and support business growth in sectors critical to both economies.

Key Areas of Cooperation

The bilateral investment deal targets several high-growth sectors:

• Innovation & Technology 

  Encouraging startups, research collaborations, and tech-driven investments.

  
  

• Infrastructure Development 

  Supporting joint projects in urban development, transport, and energy.

  
  

• Financial Regulation 

  Promoting transparent and efficient cross-border financial practices.

  
  

• Digital Services Trading 

  Facilitating trade in IT services, fintech, and digital solutions.

  
  

“This is a strategic step that will open new doors for both Israeli and Indian investors, strengthen Israeli exports, and provide businesses with certainty to grow in the world’s fastest-growing markets,” said Finance Minister Smotrich.

Significance of the Agreement

Israel hailed the deal as the first bilateral investment treaty India has signed with a Western-oriented OECD country, highlighting the growing economic alignment between the two nations. India has previously signed similar agreements with the UAE and Uzbekistan, expanding its global investment partnerships.

The agreement is expected to:

• Enhance bilateral trade and investment flows.

• Offer Israeli and Indian companies a structured framework for long-term collaborations.

• Boost confidence for investors exploring emerging markets.

  
  

Delegation and Strategic Outreach

Finance Minister Smotrich led an Israeli government delegation to India, including:

• Shmuel Abramzon, Chief Economist, Ministry of Finance

• Yali Rothenberg, Accountant General

• Ilan Rom, Director-General, Ministry of Finance

• Seffy Singer, Chairman, Israel Securities Authority

The delegation aims to promote economic collaborations, investment opportunities, and sector-specific partnerships between the two nations.

Final Word

The Israel–India bilateral investment agreement marks a major milestone in economic diplomacy, strengthening trade, innovation, and investor confidence. By targeting technology, infrastructure, and financial regulation, the deal sets the stage for sustainable long-term cooperation between two of Asia’s most dynamic economies.