Synopsis: India and Israel have signed a landmark Bilateral Investment Treaty (BIT), setting the stage for stronger economic cooperation and a possible free trade agreement (FTA) in the near future. The agreement promises clarity, stability, and new opportunities in infrastructure, technology, and services.
India and Israel on Monday signed a Bilateral Investment Treaty (BIT) in the national capital, with Finance Ministers Nirmala Sitharaman and Bezalel Smotrich formalizing the pact. The agreement is expected to significantly boost reciprocal investments and strengthen economic cooperation between the two nations.
Speaking to ANI, Shmuel Abramzon, Chief Economist at Israel’s Ministry of Finance, said the deal would bring “clarity and stability” to investors on both sides. He further emphasized that the BIT could pave the way for a full-fledged Free Trade Agreement (FTA). “We already have investments from both sides, and we want to increase that. This is what the agreement does,” he noted.
While no concrete timeline has been given for an FTA, Abramzon hinted that pre-negotiations are already underway. “Once the global trade priorities with the US and EU stabilize, I am confident discussions will move forward,” he said.
Highlighting the potential, Abramzon added that bilateral trade could easily double or triple across diverse sectors, extending beyond traditional goods into technology, financial services, and infrastructure. He cited Haifa Port’s acquisition by the Adani Group as a milestone example, while pointing to new opportunities in railways, metro projects, and desalination plants in Israel.
The economist also stressed Israel’s keen interest in deepening cooperation under the Make in India initiative, acknowledging India’s vast manufacturing capabilities. “As a small country with limited manufacturing capacity, Israel sees India as a natural partner in scaling global value chains,” he said.
On global trade tensions, Abramzon downplayed the impact of recent US tariffs on Indian exports, calling them a “temporary situation” that would eventually be resolved. He also acknowledged India’s firm stance on protecting its agricultural sector, describing it as a “fair balance of national interest.”
With the signing of the BIT, both nations are also exploring the possibility of Israel’s Finance Ministry establishing a permanent office in Delhi to accelerate collaboration across investment, technology, and innovation.
Disclaimer: This article is for informational purposes only and should not be construed as investment, trade, or policy advice. Readers are encouraged to follow official government releases for verified updates.
