India-Israel bilateral investment pact comes into force

Synopsis

India and Israel's crucial Bilateral Investment Agreement, signed last September, officially came into effect on Saturday, July 4, 2026. This pact aims to bolster economic ties by offering strong investor protection while allowing governments policy flexibility. Following this, negotiations for a comprehensive Free Trade Agreement are also underway, promising enhanced market access and smoother trade flows between the two nations.

The India-Israel Bilateral Investment Agreement (BIA) which was signed in September last year, came into force into Saturday.

"The Bilateral Investment Agreement (BIA) between the Government of the Republic of India and the Government of the State of Israel signed on 8th September 2025 in New Delhi, enters into force with effect from today, i.e., 04 July 2026," the Ministry of Finance said in a statement.

The investment pact marked a towards strengthening bilateral economic relations and ensuring a secure and predictable investment climate. between the two countries.

The BIA seeks to provide robust protection for investments and investors while preserving the government's policy space to pursue legitimate public policy objectives, in line with evolving principles of international investment law.

The pact is expected to contribute to increased cross-border investment activity and deepen the economic partnership between India and Israel.

In November last year, India and Israel signed the Terms of Reference for negotiations for a Free Trade Agreement (FTA) as the Union Minister of Commerce & Industry Piyush Goyal announced that the two countries have decided to enter into negotiations for trade pact.

The minister underlined that the two nations have "unlimited possibilities and potential" to expand economic engagement.

"Soon after having executed a bilateral invetsment treaty, collectively the treaty and the free trade agreement will open doors to greater market access, flow of capital, investments and trade, both in goods and services, remove obstacles to doing business, provide clarity, predictability and stability to our economic engagement," Goyal said.