India-Israel Relations Enter New Phase with Proposed Investment Treaty

Mumbai, 8 September 2025: The upcoming three-day visit of Israeli Finance Minister Bezalel Smotrich to India, starting today, has sent across a new wave of positivity in Indo-Israel relations. As India gears up to sign a bilateral investment treaty (BIT) with Israel, many see it as a signal to bolster the momentum of the economic partnership between the two nations.

Smotrich to Meet Indian Ministers, Visit Mumbai and GIFT City

Smotrich is expected to hold discussions with multiple dignitaries from the government. These include Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Housing and Urban Affairs Minister Manohar Lal Khattar. The Israeli minister is also expected to pay a visit to Mumbai and Gujarat’s GIFT city, emphasizing Israel’s interest in India’s financial and infrastructure powerhouse.

BIT to Ensure Investor Protection, Boost Capital Flows Between Nations

Once the bilateral investment treaty is finalised, it will provide investors from both countries protection with respect to international standards, which primarily include non-discriminatory treatment and independent arbitration access. Treaties similar to BIT have already been signed by Israel with over 15 countries, including Japan and the Middle East. Officials from both sides believe that this move will lead the way for greater bilateral flows of capital, in addition to building a stronger investment ecosystem.

Bilateral Trade Hits $4B; Investments Cross $777M in Last Five Years

As per the official records, both countries collectively share annual bilateral trade worth over $4 billion. In the last five years, Israel’s foreign direct investment in India has touched $334.2 million, while on the other hand, India’s cumulative direct investment in Israel has totalled $443 million. Today’s BIT is expected to raise these numbers further.

Fourth Israeli Ministerial Visit in 2025 Highlights Growing Strategic Ties

In the year 2025 alone, this visit will be the fourth by an Israeli minister to India. The earlier visitors were Israeli ministers from the Ministry of Tourism, Economy and Industry, and Agriculture and Food Security. The series of visits emphasizes the building engagement between the two nations at the ministerial level. It also reflects their shared commitment to fostering a strategic partnership.

The proposed India-Israel bilateral investment treaty marks a significant step in deepening economic and strategic cooperation. By offering investor protection and fostering capital flows, the agreement is expected to enhance bilateral trade, infrastructure collaboration, and ministerial engagement. The series of visits underscores the ongoing commitment of both nations to build a robust and sustainable investment ecosystem.

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