India and Israel signed a bilateral investment agreement in New Delhi on Monday, aiming to boost trade, investments, and economic cooperation between the two countries. The agreement was signed by Union Finance and Corporate Affairs Minister Nirmala Sitharaman and Israel’s Finance Minister Bezalel Smotrich. It provides protections for investors, including safeguards against expropriation, transparency measures, compensation for losses, and an independent dispute resolution mechanism through arbitration.
The Indian Finance Ministry said the agreement reflects a shared commitment to strengthen economic ties and create a more robust investment environment. Currently, bilateral investments between the two nations stand at around 800 million US dollars. Sitharaman stressed the need for greater business interactions to explore investment opportunities, while Smotrich highlighted the countries’ common experience in achieving high economic growth despite security challenges. Both ministers emphasized cooperation in areas such as cybersecurity, defence, fintech innovation, infrastructure development, financial regulation, and digital payment systems.
However, the agreement has drawn sharp criticism from opposition parties in India due to Israel’s ongoing war in Gaza, which has resulted in the deaths of over 64,000 Palestinians, many of them women and children. AIMIM president Asaduddin Owaisi called the agreement “despicable” and condemned India’s engagement with Israel while the country is “overseeing genocide, ethnic cleansing, and famine in Gaza.” He also pointed out that Smotrich faces arrest warrant applications with the International Criminal Court.
The CPI(M) also criticised the agreement, calling it “shameful” that India hosted Smotrich, who leads a far-right Israeli party and is known for advocating the occupation of Gaza and annexation of the West Bank. The party noted that several countries, including the UK, Canada, Australia, Norway, the Netherlands, Slovenia, and New Zealand, have banned or sanctioned Smotrich due to his role in violence against Palestinians. The CPI(M) demanded that India suspend all military, security, and economic collaboration with Israel until a ceasefire is implemented and a peaceful resolution for Palestine is pursued.
The agreement has come at a sensitive time, as other countries have also reconsidered their ties with Israel over the conflict in Gaza. Spain, for example, announced an arms embargo and a travel ban against individuals involved in Israel’s military actions.
