The Indian and Israeli governments on Monday signed the bilateral investment treaty (BIT)  in an attempt to promote investments between the two nations.

The pact was signed between Indian Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich.

Sharing details about the ink signed, the Indian Ministry of Finance wrote on X: "The Government of India and Government of the State of Israel sign Bilateral Investment Agreement #BIT in New Delhi, today."

"Union Minister for Finance and Corporate Affairs Smt. @nsitharaman and Finance Minister of Israel H.E. Mr. Bezalel Smotrich sign the #BIT," the Ministry said.

India-Israel Economic and Commercial Relations

Since establishing diplomatic relations in 1992, India-Israel bilateral trade and economic ties have progressed rapidly.

From around USD 200 million in 1992 (comprising primarily of diamonds), merchandise trade diversified and reached around USD 10.77 billion (excluding defence) in FY 2022-23, with Indian exports at around USD 8.45 billion. In FY 2023-24 (April-March), the bilateral trade was USD 6.53 billion (excluding defense) with India's exports at USD 4.52 billion and Israel's exports at USD 2.0 billion.

India is Israel’s second-largest trading partner in Asia. Though, the bilateral merchandise trade is dominated mainly by diamonds, petroleum products, and chemicals, recent years have witnessed an increase in trade in areas such as electronic machinery and high-tech products, communications systems, medical equipment, etc.

Major exports from India to Israel include pearls and precious stones, automotive diesel, chemical and mineral products, machinery and electrical equipment, plastics, textiles, apparel, base metals and transport equipment, and agricultural Major exports from Israel to India include pearls and precious stones, chemical and mineral/fertilizer products, machinery and electrical equipment, petroleum oils, defence, machinery, and transport equipment.

Cumulative Overseas Direct Investment (ODI) from India to Israel from April 2000 to April 2024, was around USD 396 million.

Indian companies are marking their presence in Israel through mergers and acquisitions and the opening of branch offices. Indian companies are also making a mark in the Israeli innovation ecosystem. 

In the period from April 2000 to March 2024, the direct FDI from Israel to India was around USD 314.87 million. 
In 2022, a consortium led by India’s Adani Ports and Special Economic Zone Ltd (APSEZ) acquired the Haifa Port Company Ltd from the Government of Israel with an investment of USD 1.18.