New Delhi, India – India and Israel signed a bilateral investment agreement on 8 September aimed at boosting trade and investment ties between the two countries, whose partnership has grown closer in recent years.
The pact was signed by India’s Minister of Finance and Corporate Affairs, Nirmala Sitharaman, and Israeli Finance Minister Bezalel Smotrich during a meeting in New Delhi.
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According to India’s Finance Ministry, the agreement will strengthen investor protection, encourage mutual trade and investments, and introduce an independent dispute resolution mechanism through arbitration. The two sides also expressed commitment to expanding cooperation in fintech, infrastructure, financial regulation, and digital payment connectivity.
Bilateral trade between India and Israel reached $3.9 billion in 2024, Reuters reported.
Despite tensions between New Delhi and Washington over India’s purchase of Russian oil since 2022, India and Israel have continued to enjoy close ties. The partnership has been particularly strong in the defense sector, with India remaining one of Israel’s largest buyers of military equipment. Between 2001 and 2021, India imported an estimated $4.2 billion worth of Israeli arms.
Reports have also highlighted growing collaboration in arms production. Joint ventures such as Adani-Elbit Advanced Systems India, Premier Explosives, and state-owned Munitions India have supplied weapons and technology to Israel. Analysts note that this cooperation has become increasingly important for Tel Aviv as some European countries face public pressure to curtail military support amid the ongoing conflict in Gaza.
Since October 2023, Israel’s military campaign in Gaza has resulted in tens of thousands of Palestinian deaths, according to Gaza’s Health Ministry, with international observers warning the toll could be far higher. Critics argue that India’s defense ties with Israel make it a key enabler of Tel Aviv’s military operations, even as New Delhi deepens its economic partnership through agreements like the new investment pact.
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