India and Israel sign investment treaty
Based on pertinent international precedents and practices, the two nations’ BIT guarantees suitable protection for Indian investors in Israel and Israeli investors in India.
During Israel’s Finance Minister Bezalel Smotrich’s visit this week, India and Israel are anticipated to sign a Bilateral Investment Treaty (BIT), which would provide the groundwork for a free trade agreement (FTA) to increase trade between the two nations, sources here informed PTI.
Between September 8 and 10, Smotrich will travel to India for three days. While there, he is anticipated to meet with Minister of Housing and Urban Affairs Manohar Lal Khattar, Commerce and Industry Minister Piyush Goyal, and his colleague Nirmala Sitharaman.
The Israeli finance minister will travel to Mumbai and Gandhinagar’s GIFT City in addition to Delhi.
The purpose of this visit, according to authorities here, is to “establish common ground for some of the major accords, including bilateral investment treaty and FTA, and to strengthen Israel’s commercial and financial connections with India through bilateral discussions.”
“A bilateral investment treaty draft has been negotiated and finalized by both nations. During the visit, the finance ministers are anticipated to sign the BIT,” they stated.
Based on pertinent international precedents and practices, the two nations’ BIT guarantees suitable protection for Indian investors in Israel and Israeli investors in India.
By guaranteeing a minimum standard of treatment and nondiscrimination and offering an independent mechanism for arbitration of disputes, it is likely to raise investors’ comfort levels and trust.
According to sources, the BIT also offers transparency, compensation for losses, and protection against seizure of capital.
The UAE, Japan, the Philippines, Thailand, and South Africa are among the more than 15 nations with whom Israel has signed Bilateral Investment Treaties (BITs) since 2000.
The two countries’ common commitment to strengthening economic cooperation and establishing a more stable and resilient investment environment is reflected in BIT. According to a source, the BIT is anticipated to open the door for more bilateral investments, which will help both nations’ economies and enterprises.
This is the fourth Israeli minister to visit India this year.
Earlier this year, Ministers of Agriculture and Food Security Avi Dichter, Economy and Industry Nir Barkat, and Tourism Haim Katz traveled to India.
India and Israel are significant allies, with almost USD 4 billion in bilateral commerce between them each year.
Due to their complementary strengths—Israel’s global leadership in payment, blockchain, and cybersecurity technology, and India’s extensive digital infrastructure and financial inclusion platforms like UPI—India and Israel also have a lot of potential for cooperation in the fintech industry
Both nations can co-finance projects backed by the Multilateral Development Bank (MDB) or support cooperative initiatives in third countries, especially in the global south, because they are active members of organizations like the World Bank and the Asian Development Bank.
