India and Israel signed a new Bilateral Investment Agreement (BIA), making Israel the first Organisation for Economic Co-operation and Development (OECD) country to adopt India’s new investment treaty model.
The agreement replaces the earlier Bilateral Investment Treaty (BIT) signed in 1996, which was terminated in 2017.
A BIA is a legal agreement between two countries to protect and promote investments through investor rights and dispute settlement mechanisms.
The agreement aims to increase bilateral investments, protect against unfair expropriation, ensure compensation, and improve investor confidence.
India’s investment treaty framework is based on the Model Bilateral Investment Treaty (BIT) 2015, which balances investor protection with the government’s regulatory powers.