By Anushka Rajvedi
A Bilateral Investment Treaty was signed between India and Israel in New Delhi to enhance and secure the foreign investments between the two countries.
A Bilateral treaty was signed between Indian Finance Minister Nirmala Sitharaman and Bezalel Smotrich, the Finance Minister of Israel, on 8 September 2025. The Israeli Minister, during his visit to India, emphasized the importance of deepening the relationship between the two countries. Signed at New Delhi, the treaty focuses on boosting trade between the countries and enhancing investment flows. Talking about the collaboration, Nirmala Sitharaman stressed the importance of ‘innovation, advanced technology, better defence and improved cyber security.’
Authorized by several Western countries for his linkages to various illegal settlements in the West Bank, the Israeli Minister said the deal is an important step. He emphasised, “This is an important strategy for the joint vision of the two countries.” On a post on X, he mentioned,’ the agreement between India and Israel is about mutual innovation, prosperity and economic growth.’
Calling it a ‘milestone in the history of Indian Trade’, the Indian Finance Minister said that collaboration will expand the field of developments in infrastructure, fintech, regulating finances and better connectivity for digital payments.
In the year 2024, the bilateral trade between the two nations stood at around $3.9 billion. However, this year, the trade currently, according to the official figures, stands at $800 million. As New Delhi is one of the largest buyers of ammunition from Israel, the investment treaty focuses mainly on the sector of defense and security.
Israel has been facing political isolation after it attacked Gaza. India, although it was one of the first countries to condemn the ‘act of terror’ by Israeli-led Hamas in October 2023, is still moving closer to Israel to maintain the trade balance between the two countries.