Overview
- The Bilateral Investment Agreement came into force on July 4, 2026, and its full text was published the same day, formally replacing the 1996 India‑Israel BIT.
- The treaty guarantees protections such as safeguards against direct and indirect expropriation, minimum standards of treatment, transparency in laws and permits free transfers of investment funds subject to temporary macroeconomic safeguards.
- A new dispute framework requires investors to pursue domestic remedies first with a three‑year local remedies period for Israeli investors, mandates a six‑month consultation before arbitration, and bars third‑party funding for claims.
- The agreement expands coverage to include portfolio investments like shares, bonds and certain corporate debt, a departure from India’s 2015 model that could broaden exposure to investor‑state claims according to analysts.
- Officials say the pact is meant to boost cross‑border investment and deepen cooperation in tech, defence, AI, water and pharma, while the deal arrives as talks on a parallel free trade agreement proceed slowly because of regional security disruptions.