India, Israel ink new investment deal: What to know
The deal comes just a week after the Shanghai Cooperation Organization summit in Tianjin, China, where India signed a declaration condemning Israeli actions in Gaza and Iran.
Israel and India deepened economic ties on Monday with the signing of a new investment agreement in New Delhi, as Israel faces increasing international pressure for its military campaign in Gaza.
The bilateral investment agreement was signed by Israel’s finance minister, Bezalel Smotrich, and India’s finance minister, Nirmala Sitharaman.
Israel’s Finance Ministry said in a statement Monday that the agreement makes Israel the first Organization for Economic Co-operation and Development (OECD) country to sign an investment treaty under India’s new model for such agreements. Monday’s deal replaces a previous agreement signed in 1996.
👉 The Government of India and Government of the State of Israel sign Bilateral Investment Agreement #BIT in New Delhi, today
— Ministry of Finance (@FinMinIndia) September 8, 2025
👉 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
The 1996 agreement was terminated in 2017 as part of India’s efforts to modernize its investment treaties to balance investor protection with government regulation.
