India, Israel Sign Bilateral Investment Deal
India’s Union Finance Minister Nirmala Sitharaman and her Israeli counterpart, Finance Minister Bezalel Smotrich, signed a Bilateral Investment Agreement (BIA) on the latter’s three-day visit to India. The far-right Israeli minister had faced sanctions and condemnation from several Western governments and the European Union for his hardline statements against Palestinians.
The visit takes place while Smotrich is facing international criticism for his extremist views, and the agreement comes as some countries are threatening to cut economic ties with Israel, and the large global investment funds are divesting Israeli assets over Israel’s conduct in the Gaza war.
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The BIA is directed to facilitate mutual investment flows and to encourage economic cooperation and trade between the two countries.
The two finance heads signed a deal to advance economic partnership in the fields of innovation, infrastructure development, financial regulation, and digital services trading.
Smotrich said that the strategic step will open new doors for both Israeli and Indian investors, strengthening Israeli exports and providing tools to develop in the world’s growing markets. While calling India a tremendous opportunity for Israel, the Israeli finance minister said, India is a growing economic power and this cooperation provides an opportunity to Israel.
Israel hailed the agreement as the first of its kind signed by India with any Western oriented economy.
The bilateral investment agreement safeguards investors by establishing mutual protections, giving Israeli investors more certainty against any regulatory changes in both countries, as well as security from expropriation. The treaty establishes conditions for fair treatment and non-discrimination and provides a forum for independent dispute settlement through arbitration.
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During the three-day visit that started Monday, the Israeli government delegation, led by Smotrich, will be meeting with Indian government officials, including Commerce and Industry Minister Piyush Goyal, and Housing and Urban Affairs Minister Manohar Lal Khattar.
