India and Israel Forge a New Dawn in Bilateral Investment Relations

India has reduced the local remedies exhaustion period from five to three years for Israeli investors, enhancing the bilateral investment agreement signed with Israel. The pact aims to protect investments, facilitate trade, and provide a robust dispute resolution mechanism, promoting stronger economic ties between the two nations.

In a significant development, India has shortened the local remedies exhaustion period for Israeli investors to three years, down from the earlier five, as part of a new bilateral investment agreement. This agreement, which follows the model of India's recent deal with the UAE, was signed on Monday and aims to bolster investor confidence.

The India-Israel Bilateral Investment Agreement includes a provision for portfolio investments, marking a deviation from past treaties. By ensuring protections against expropriation, transparent operations, and compensation for losses, the pact is designed to balance investor rights with sovereign regulatory freedoms.

Finance Minister Nirmala Sitharaman and Israel's Finance Minister Bezalel Smotrich inked the agreement, underscoring a commitment to deepening economic cooperation. The pact is poised to facilitate increased bilateral investments, enhance trade, and offer a dependable framework for dispute resolution.

(With inputs from agencies.)