New Delhi, Sep 8: India and Israel signed a Bilateral Investment Agreement here on Monday to provide greater certainty and protection for investors to boost the growth of mutual investments between the two countries.

The agreement was signed by Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich.

“The agreement marks a historic milestone in the relations of the two countries. The agreement is expected to boost investments, provide greater certainty and protection for investors, facilitate the growth of trade and mutual investments by ensuring a minimum standard of treatment, and an independent dispute resolution mechanism through arbitration,” according to an official statement.

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 statement explained.

The signing of the agreement reflects the shared commitment of both nations towards enhancing economic cooperation and creating a more robust and resilient investment environment. The agreement is expected to pave the way for increased bilateral investments between the two countries, which presently stands at a total of $800 million, thereby benefiting businesses and economies in both countries.

In this regard, Finance Minister Nirmala Sitharaman mentioned that both sides should have more business interaction to explore opportunities of investments, to gain benefit from the agreement

She further informed about the series of reforms undertaken by India over last more than 10 years, which has enabled India to be the fastest growing economy of the world and has created an investment friendly environment in the country.

Finance Minister Sitharaman also expressed her condolences over the loss of innocent lives in the terrorist attack in Israel on Monday. She also mentioned the shared value of the civilizational ethos of the two countries which contributed to global peace. Both ministers acknowledged the threat of terrorism faced by both the countries and expressed solidarity with each other.

The Israeli Finance Minister spoke about the strong common background of the two countries achieving high economic growth despite security challenges. The Finance Minister of Israel emphasised the need for greater collaboration between two nations in the field of cybersecurity, defence, innovation and high-technology sectors.

Both the ministers emphasised their commitment to advancing economic cooperation in the fields of fintech innovation, infrastructure development, financial regulation, and digital payment connectivity.

They agreed to enhance economic and financial cooperation between the two countries and to promote and protect investments on a reciprocal basis.

The Finance Minister of Israel also extended an invitation to Finance Minister Sitharaman to visit Israel.

(IANS)

Argus English | argus english | Odisha Latest News, Breaking News, Trending News, Live TV