ANI | 5–6 minutes | Updated: Sep 09, 2025 03:19 I
New Delhi [India], September 9 (ANI): Israel’s Finance Minister Bezalel Smotrich on Monday said the new Bilateral Investment Agreement (BIA) signed with India will provide strong momentum for private companies to expand investments in each other’s economies.
“The bilateral investment agreement that I signed today with the Indian Minister of Finance gives a strong tailwind for private companies to come and invest in each other’s economies. Indian companies can feel completely secure investing in Israel and Israeli companies can feel secure investing in India,” Smotrich told ANI.
Highlighting the broader context of the pact, Smotrich pointed to shared challenges and values binding the two nations. “Israel and India have a lot in common, both in the past and present. Both our nations contend with lethal attacks by Islamic terrorism. The joint economic potential of Israel and India is tremendous, built on values of democracy, freedom of religion, and human dignity. Both governments encourage these investments and create an ecosystem that provides security and insurance for years ahead,” he said.
The minister also confirmed progress on the long-discussed Free Trade Agreement (FTA). “We just spoke about this now with Commerce Minister Piyush Goyal. Our joint teams are working on forming the exact formula for this to happen. I believe that in the coming months, we will complete the process. The volume of trade has doubled in recent years, and we can multiply it three or four times. There is no reason it shouldn’t happen,” he added.
Reiterating Israel’s alignment with India’s economic priorities, Smotrich noted that Israel was among the first to implement Prime Minister Narendra Modi’s Make in India vision. “Israeli companies are already working in cooperation with Indian firms,” he said.
The agreement, signed in New Delhi by Smotrich and Finance Minister Nirmala Sitharaman, makes Israel the first OECD member state with which India has signed such a pact under its new model for investment treaties. The BIA replaces the previous treaty from 1996, which was terminated in 2017 as part of India’s broader policy reset.
According to Israel’s Ministry of Finance, the agreement will ensure certainty and protection for investors, strengthen reciprocal investments, and contribute to enhanced trade and investment flows. It follows months of intensive work between the Chief Economist’s teams of both nations.
Both sides reaffirmed their commitment to cooperation in innovation, infrastructure development, financial regulation, and digital trade, while also exploring collaboration within regional development banks. Smotrich invited Sitharaman for a reciprocal visit to Israel, and both governments agreed to examine a bilateral financial protocol to improve financing conditions for exporters.
The Israeli finance minister also said his ministry is considering opening a representation in India to strengthen institutional ties and advance joint projects.
Smotrich was accompanied by senior officials, including Ministry of Finance Director General Ilan Rom, Chief Economist Dr. Shmuel Abramzon, Accountant General Yahli Rothenberg, and Israel Securities Authority Chairman Seffy Zinger. The delegation is holding meetings with Indian counterparts to deepen economic cooperation.
The Finance Ministry statement also thanked the Embassy of Israel in New Delhi for its role in facilitating the agreement, noting its close cooperation was instrumental in reaching this milestone. (ANI)
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