Key Takeaways
- The Bilateral Investment Agreement signed by Israel and India’s Finance Ministers facilitates reciprocal investments and strengthens economic ties between the two nations.
- The agreement is the first OECD member state to sign an agreement under India’s new investment treaty model, marking a significant milestone in their economic cooperation.
- The agreement promotes reciprocal investments, ensures certainty and protection for investors, and contributes to expanding trade and investment between the two countries.
A new Bilateral Investment Agreement, signed by Israel’s Minister of Finance, Bezalel Smotrich, and India’s Finance Minister will facilitate reciprocal investments between investors from both the countries. Israel is the first OECD member state with whom India has signed this strategic agreement, in accordance with India’s new model for investment treaties.
A delegation of senior officials from the Ministry of Finance, led by Minister Bezalel Smotrich, is currently visiting India to promote a range of economic collaborations between the two nations.
At the centre of the visit, on Monday, September 8, in New Delhi, the Minister of Finance of the State of Israel, H. E. Bezalel Smotrich, and the Minister of Finance of the Republic of India, Nirmala Sitharaman, signed a Bilateral Investment Agreement (BIA) aimed at strengthening the economic partnership between the countries.
The new agreement supports the promotion of reciprocal investments between the parties, ensuring certainty and protection for investors, and will contribute to expanding trade and investment between the two countries. It replaces the previous agreement signed in 1996, which was terminated in 2017 as part of India’s policy with reference to its investment treaties.
Israel is the first OECD member state to sign an agreement under India’s new investment treaty model. The agreement follows intensive work over recent months between the Chief Economist’s teams at Israel’s Ministry of Finance and their counterparts in India’s Ministry of Finance.
In their meeting, the ministers emphasized the profound economic relations between the two countries, which are based on shared strategic interests, as well as their commitment to advancing economic cooperation in the fields of innovation, infrastructure development, financial regulation, and trade in digital services. It was also agreed to cooperate within the framework of regional development banks.
Minister Smotrich invited the Indian Finance Minister for a reciprocal visit to Israel. In addition, both sides agreed to jointly examine the establishment of a bilateral financial protocol between the governments, which would provide improved financing conditions for Israeli exporters.
The Minister of Finance further noted that the possibility of opening a Ministry of Finance representation in India would be examined, with a view to strengthening ties with government and market stakeholders and promoting joint economic projects. At the conclusion of the meeting, the ministers instructed their teams to continue joint work on advancing all matters discussed.
The delegation led by the Minister included senior officials from the Ministry of Finance and the Securities Authority, Director General Ilan Rom, Chief Economist Dr Shmuel Abramzon, Accountant General, Yahli Rothenberg, and Chairman of the Israel Securities Authority, Seffy Zinger.
During this visit, the officials are holding working meetings with their counterparts with the aim of developing cooperation and links between the two economies.
The Minister of Finance also extended his appreciation to the Embassy of Israel in New Delhi for its dedicated efforts and invaluable support in facilitating this important achievement. Their close cooperation and assistance were instrumental in making the signing of this agreement possible.
