The (BIA) came into force from Saturday, thus marking a new chapter in the economic ties between the two nations.
The BIA between and Tel Aviv was signed on 8 September 2025. As the agreement takes effect from today, it is expected to provide investors with greater certainty while deepening bilateral economic engagement between the two countries, as per a press release by the finance ministry.
The BIA is a “landmark step towards strengthening bilateral economic relations and ensuring a secure and predictable investment climate,” the Ministry said. It also said that the agreement creates a balance between investors and protecting investments while it also has space for both parties to protect their individual sovereign 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-Israel trade relations
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.
India-Israel FTA negotiations after July?
New Delhi and Tel Aviv are also expected to resume formal negotiations on a free trade agreement (FTA) after July, with this round of talks taking place in Tel Aviv.
These talks are a renewed effort to conclude a trade pact that has been under discussion for more than a decade. The negotiations initially began in 2010 and advanced intermittently. India and Israel signed the Terms of Reference in November 2025, thus formally launching negotiations.
“India should focus on ensuring that its key concerns are adequately addressed during the negotiations, particularly on issues such as intellectual property rights (IPR), defence technology transfer, government procurement, data governance, movement of professionals, agricultural market access, and rules of origin,” said Dr. Ram Singh, a professor at the Indian Institute of Foreign Trade (IIFT) said regarding the negotiations.
Experts call for stronger India-Israel cooperation in defence, tech, trade
Last month, the India Israel Centre, in partnership with the Jindal Centre for Israel Studies (JSIS) at OP Jindal Global University, held a closed-door roundtable conference on ties between the two countries, with participants calling for deeper cooperation in defence, culture, technology and trade.
Chairing the roundtable, JSIS Director Khinvraj Jangid said, “From an Indian foreign policy perspective, Israel is super important, and one should know more about this relationship, its past as much as present, and how key events, actors and ideas have brought these countries together.”
“Early Indian leaders, parliamentarians and intellectuals, Nehru, Karpoori Thakur, Ashok Mehta, Acharya Kripalani, and JP engaged with the idea of Israel and debated freely why India and Israel should work together,” he added, as per a PTI report.
With agency inputs