In New Delhi the finance ministers of Israel and India today (Monday) signed a new strategic investment agreement, which will replace the agreement signed in 1996 and canceled in 2017, in the first agreement of its kind that India has signed with an OECD member country.
The agreement was signed in New Delhi by Finance Minister Bezalel Smotrich and Indian Finance Minister Nirmala Sitharaman, with the goal of encouraging and protecting investments, enhancing investor confidence, and simplifying financial activity across both markets, which are expected to contribute to an increase in the volume of trade and investment between the countries.
The two ministers also emphasized the importance of cooperation in innovation, infrastructure, financial regulation and digital services, and expressed agreement to promote additional joint projects.
“This is a strategic move that will create fresh opportunities for Israeli and Indian investors, expand Israeli exports, and give businesses in both nations the certainty and tools they need to thrive in some of the fastest-growing markets worldwide,” Smotrich stated. He emphasized India’s growing role as a major economic power and described the partnership as a significant opportunity for Israel.
According to the Finance Ministry, the deal marks the first time India has signed such an agreement with a Western-oriented economy among the OECD member states. In the past year, India finalized similar treaties with the United Arab Emirates and Uzbekistan.
Smotrich added that he is considering opening a Ministry of Finance representative office in India to strengthen economic ties between the two countries.