The Bilateral Investment Agreement (BIA) between India and Israel came into force on Saturday, marking a new phase in economic ties between the two countries.
The government of the Republic of India and the government of the State of Israel had signed the BIA on September 8, 2025 in New Delhi. With its enforcement from Saturday, the agreement is expected to provide greater certainty to investors and deepen bilateral economic engagement, according to a press release issued by the Union Ministry of Finance.
The ministry said the BIA is a "landmark step towards strengthening bilateral economic relations and ensuring a secure and predictable investment climate". It noted that the agreement strikes a balance between protecting investments and investors, while retaining sovereign policy space for legitimate public policy objectives.
"The BIA is robust in protection of Investment and Investor with respect to their investments while being flexible enough to retain sovereign policy space in line with legitimate public policy objectives, reflecting the modern principles and evolving jurisprudence of international investment law," the release stated.
India and Israel already share strong trade and technology partnerships, particularly in areas such as defense, water, agriculture, cybersecurity, pharma and innovation. The BIA is expected to add momentum to investment flows in these sectors by addressing investor concerns around protection, dispute resolution and regulatory clarity.
"The BIA is expected to contribute to increased cross-border investment activity and further deepen the economic partnership between India and Israel," the release said.
The agreement comes at a time when both economies are focused on technology-led growth and resilient supply chains. For Indian companies, it opens up more avenues in Israeli innovation ecosystems, especially in DeepTech, AI, water-tech and defence. For Israeli firms, it provides a structured route to scale in India's large domestic market and in sectors aligned with the "Viksit Bharat" agenda.
With the BIA now in force, both governments will look to translate the legal framework into higher investment volumes, joint ventures and technology collaborations in the coming months.