New Delhi: The Bilateral Investment Agreement (BIA) between India and Israel came into effect on Saturday, providing a legal framework aimed at facilitating investments and strengthening economic cooperation between the two countries.
The Government of India and the Government of the State of Israel signed the agreement on September 8, 2025, in New Delhi.
With its enforcement from July 4, 2026, the agreement is expected to provide greater certainty to investors and support increased bilateral investment, according to the Ministry of Finance.
In a statement, the Ministry described the agreement as an important step towards strengthening bilateral economic relations and creating a secure and predictable investment environment.
“The BIA is a landmark step towards strengthening bilateral economic relations and ensuring a secure and predictable investment climate,” the Ministry said.
The Ministry noted that the agreement provides protection for investments and investors while preserving the sovereign right of both countries to implement legitimate public policy measures.
“The BIA is robust in protection of investment and investor with respect to their investments while being flexible enough to retain sovereign policy space in line with legitimate public policy objectives, reflecting the modern principles and evolving jurisprudence of international investment law,” the statement said.
👉 India-Israel Bilateral Investment Agreement (BIA) comes into force today
👉 Government of the Republic of India and the Government of the State of Israel had signed Bilateral Investment Agreement (BIA) on 8th September 2025 in New Delhi
Read more ➡️ https://t.co/qbPvMeOUHo… pic.twitter.com/CvnwfnsAbk
— Ministry of Finance (@FinMinIndia) July 4, 2026
Framework for Investment Protection
According to the Ministry, the agreement seeks to balance investor protection with regulatory flexibility. It includes provisions intended to enhance legal certainty, improve the investment climate, and provide greater clarity on the treatment of investments.
The agreement is also expected to address investor concerns related to investment protection, dispute resolution, and regulatory transparency, which could support higher levels of cross-border investment.
Expanding Economic Cooperation
India and Israel maintain cooperation across several sectors, including defense, agriculture, water management, cybersecurity, pharmaceuticals, innovation, and technology.
The Ministry said the BIA is expected to support investment flows in these sectors by providing a structured framework for investors in both countries.
“The BIA is expected to contribute to increased cross-border investment activity and further deepen the economic partnership between India and Israel,” the Ministry said.
The agreement comes as both countries continue to focus on technology-driven growth and strengthening supply chains. It is expected to facilitate greater collaboration in areas such as DeepTech, artificial intelligence (AI), water technology, and defense technologies, while providing Israeli companies with a clearer framework for investing in India’s expanding market.
