New Delhi | Updated: July 4, 2026
The Bilateral Investment Agreement between India and Israel came into force on Saturday, marking a new phase in economic and investment ties between the two countries.
The agreement was signed by the Government of India and the Government of Israel on September 8, 2025, in New Delhi.
According to the Ministry of Finance, the agreement is expected to provide greater certainty to investors and strengthen bilateral economic cooperation.
The Ministry described the pact as a landmark step towards building a secure and predictable investment climate between India and Israel.
It said the agreement balances investment protection with the sovereign policy space required by both countries for legitimate public policy objectives.
The Bilateral Investment Agreement is expected to boost cross-border investments by addressing key investor concerns related to protection, dispute resolution, and regulatory clarity.
India and Israel already share strong cooperation in trade, defense, water management, agriculture, cybersecurity, pharmaceuticals, and innovation. The new pact is expected to further support investment in these sectors.
The agreement is also likely to encourage investment in emerging areas such as DeepTech, artificial intelligence, water tech, and defense technology.
For Indian companies, the pact is expected to open more opportunities in Israel’s innovation ecosystem. For Israeli firms, it provides a structured route to expand in India’s large domestic market.
The agreement comes at a time when both countries are focusing on technology-led growth, resilient supply chains, and strategic economic cooperation.
With the pact now in force, both governments are expected to work towards increasing investment flows, joint ventures, and technology collaborations in the coming months.
