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India-Israel Relations: Agreement is expected to pave the way for bilateral investment between the two countries, which is currently a total of 800 million USD.
India-Israel Relations: India and Israel on Monday signed a bilateral investment agreement for the purpose of promoting and safety in both countries. The agreement includes provisions to save investment from seizing, ensure transparency and compensate for smooth transfer and damage. The agreement also provides for the balance between investor protection and state regulatory rights. The Finance Ministry has said that this agreement will boost investment in both countries. Also, investors will also get certainty and security. It is said that the agreement is expected to pave the way for an increase in bilateral investment between the two countries, which is currently a total of 800 million USD. This will benefit businesses and economies in both countries. In this regard, Finance Minister Nirmala Sitharaman mentioned that both sides should have more business talks to find out investment opportunities to get benefits from the agreement.
Economic support will increase between the two countries
The agreement was signed here by Sitharaman and Israel Minister of State for Finance Bezlel Smotrich. The two ministers emphasized their commitment to carry forward financial cooperation in the fields of Fintech innovation, development of infrastructure, financial regulation and digital payment connectivity. The ministry said that they agreed to increase economic and financial support between the two countries and promote and preserve investment on mutual basis. During April 2000 and June 2025, India received a US $ 337.77 million FDI (FDI) from Israel. It is important to sign the agreement as the two countries are also negotiating on a free trade agreement. India is also actively interacting with more than a dozen countries including Saudi Arabia, Qatar, Oman, Switzerland, Russia, Australia and the European Union on bilateral investment treaties (BITs). These investment treaties help to preserve and promote investment in each other’s countries.
Government is creating investment system and better
India is ready to become the third largest economy and the center of global manufacturing. The government is taking many measures to further improve its investment system that encourages investors. India signed BIT with two countries in 2024. Last year, the Center announced the implementation of these treaties with UAE and Uzbekistan. Unlike the chapter related to the recent investment encouragement or convenience in recently concluded free trade agreements, investment protection elements under BIT offer a wide range of obligations and commitments to foreign investors.
India crosses 1 trillion dollar figure
Provision to compulsorily abolish local legal measures for a five -year period before resorting to international arbitration in BIT is beneficial for both investors and states involved in dispute. India’s approach to the need for local measures is in line with its attitude to protect taxpayers’ money and avoid long and expensive legal battles. Also, provides intermediaries as an alternative dispute solution mechanism. FDI flow in India crossed the 1 trillion US $ 1 stone in the period of April 2000-June 2025, which firmly established the country’s reputation as a safe and major investment destination globally. It was US $ 80.61 billion in the last financial year.
