NEW DELHI: India and Israel on Monday signed a bilateral investment agreement as part of efforts to bolster economic ties. In the process, Israel has become the first Organisation for Economic Co-operation and Development (OECD) member state to sign a “strategic agreement” in accordance with India’s new model for investment treaties. The agreement – signed by finance minister Nirmala Sitharaman and her Israel counterpart Bezalel Smotrich – replaces the previous one signed in 1996, which was terminated in 2017 as part of India’s policy on investment treaties.“The agreement is expected to boost investments, provide greater certainty and protection for investors, facilitating growth of trade and mutual investments by ensuring a minimum standard of treatment, and an independent dispute resolution mechanism through arbitration,” finance ministry said in a statement.
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It said, “The agreement also includes provisions to safeguard investments against expropriation, ensure transparency, and enable smooth transfers and compensation for losses. At the same time, it carefully balances investor protection with the State’s regulatory rights, preserving sufficient policy space for sovereign governance.” The treaty will help boost investment from both countries, estimated at $800 million, it said.Israeli finance ministry said both sides will also examine establishment of a bilateral financial protocol between the govts, which would provide improved financing conditions for Israeli exporters. TNN