Israel and India are in the final stages of negotiating an investment protection agreement and expect to sign it in the coming months, Israel’s Finance Ministry said on Tuesday.
Israeli Finance Minister Bezalel Smotrich and the ministry’s chief economist, Shmuel Abramzon, discussed the matter—along with other economic issues—with Indian ambassador to Israel, JP Singh, during a meeting in Jerusalem. The ministry did not provide further details on the discussions.
"Deepening economic ties with India is one of the goals I have set," Smotrich said after the meeting, describing India as “a true friend of Israel”.
An investment protection agreement is a bilateral treaty designed to reduce the perceived risks of cross-border investments by ensuring fair treatment, and by removing barriers to the transfer of capital and profits.
The Israeli Finance Ministry noted that India has, in recent years, emerged as one of Israel’s most significant global trade partners, particularly in Asia. It added that the volume of trade and investments between the two nations is expected to grow sharply, bolstered by closer diplomatic and security ties.
Bilateral trade between India and Israel reached nearly $4 billion in 2024. “In recent years, we have witnessed a strengthening of economic ties between us, including in the fields of defence exports and infrastructure,” Smotrich said.
He added, “The potential for further strengthening our economic cooperation is immense. It can leverage our shared technological capabilities, India’s demographic scale, and the geo-strategic position of both countries.”