The India-Israel Bilateral Investment Agreement (BIA) officially came into force on July 4, 2026. The agreement was signed by both countries in New Delhi on September 8, 2025, and is aimed at boosting two-way investments by providing a stable, transparent and predictable investment framework.
The agreement protects investments and investors from both countries while allowing each government to retain the right to make policy decisions in areas of legitimate public interest. It follows modern international investment rules and includes a framework for fair treatment and dispute resolution.
India expects the BIA to encourage higher cross-border investment and deepen economic cooperation with Israel as both countries expand collaboration in technology, manufacturing, infrastructure and innovation.
The investment pact is part of the broader India-Israel Special Strategic Partnership, announced during Prime Minister Narendra Modi’s visit to Israel in February 2026. Both countries also launched negotiations for a Free Trade Agreement (FTA) after signing the Terms of Reference.
The two sides agreed to strengthen cooperation in sectors including artificial intelligence, cybersecurity, semiconductors, quantum computing, biotechnology, defence, agriculture, water management and space. They also agreed to explore linking India’s UPI with Israel’s payment system to enable faster cross-border payments.
India and Israel further committed to expand direct flights, increase business and financial cooperation, and facilitate the arrival of up to 50,000 additional Indian workers in Israel over the next five years, while promoting greater collaboration in research, education and innovation.
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