India and Israel’s Bilateral Investment Agreement (BIA) has officially come into force, replacing the 1996 investment treaty with a modern framework that strengthens investor protection while preserving both governments’ regulatory powers. Israel also becomes the first OECD country to sign India’s new-generation Bilateral Investment Agreement, marking a significant milestone in bilateral economic relations.The agreement is expected to encourage long-term investments across sectors such as artificial intelligence, DeepTech, semiconductors, defence manufacturing, aerospace, agriculture and water technology. It also provides greater legal certainty for businesses, facilitates smoother cross-border fund transfers, promotes joint ventures and innovation, and could create new opportunities for Indian startups, professionals and skilled workers as economic cooperation between the two countries expands.
