India and Israel are anticipated to sign a bilateral investment treaty (BIT) next week, marking a significant step towards strengthening economic ties between the two nations. The signing is expected to occur during Israeli Finance Minister Bezalel Smotrich's visit to India between September 8 and 10.

The primary objective of the BIT is to provide protection to investors from both countries, fostering a more secure and reliable investment environment. It seeks to boost investor confidence through assurances of fair and equitable treatment, non-discrimination, and access to an independent forum for dispute resolution via arbitration. The treaty aligns with international precedents and practices, demonstrating a shared commitment to enhancing economic cooperation.

Sources indicate that the BIT negotiations have concluded, and the finance ministers of both countries are expected to formalize the agreement during the visit. This treaty is expected to pave the way for increased bilateral investments, benefiting businesses and economies in both India and Israel.

In addition to the BIT, discussions are underway to lay the foundation for a free trade agreement (FTA) between India and Israel. The FTA aims to further enhance trade relations and unlock the immense potential for economic cooperation between the two countries. India has become one of Israel's most important trade partners globally and especially in Asia. Bilateral trade between India and Israel in 2024 amounted to almost $4 billion.

Israeli Finance Minister Bezalel Smotrich's visit includes meetings with Indian Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Minister of Housing and Urban Affairs Manohar Lal Khattar. Smotrich will also visit Mumbai and the GIFT City in Gandhinagar.

Israel has signed BITs with over 15 countries since 2000, including the UAE, Japan, the Philippines, Thailand, and South Africa. These agreements reflect Israel's commitment to creating a robust and resilient investment environment.