From Signature to Action: India-Israel Bilateral Investment Agreement (BIA) comes into force today

India-Israel BIA comes into force today: The Bilateral Investment Agreement (BIA) between India and Israel, which was signed on 8th September 2025 in New Delhi, has come into effect today, July 4, 2026.

"Government of the Republic of India and the Government of the State of Israel signed on 8th September 2025 in New Delhi, enters into force with effect from today, i.e., 04 July 2026," said the Ministry of Finance in a release.

With its enforcement from Saturday, the agreement is expected to provide greater certainty to investors and deepen bilateral economic engagement, according to a press release shared by the Ministry of Finance.

The Ministry said the BIA is a "landmark step towards strengthening bilateral economic relations and ensuring a secure and predictable investment climate." It noted that the agreement strikes a balance between protecting investments and investors, while retaining sovereign policy space for legitimate public policy objectives.

"The BIA is robust in protection of Investment and Investor with respect to their investments while being flexible enough to retain sovereign policy space in line with legitimate public policy objectives, reflecting the modern principles and evolving jurisprudence of international investment law," the release stated.

India and Israel already share strong trade and technology partnerships, particularly in areas such as defence, water, agriculture, cybersecurity, pharma and innovation. The BIA is expected to add momentum to investment flows in these sectors by addressing investor concerns around protection, dispute resolution and regulatory clarity.

"The BIA is expected to contribute to increased cross-border investment activity and further deepen the economic partnership between India and Israel," the release said.

The agreement comes at a time when both economies are focused on technology-led growth and resilient supply chains. For Indian companies, it opens up more avenues in Israeli innovation ecosystems, especially in DeepTech, AI, water-tech and defence. For Israeli firms, it provides a structured route to scale in India's large domestic market and in sectors aligned with the 'Viksit Bharat' agenda.

With the BIA now in force, both governments will look to translate the legal framework into higher investment volumes, joint ventures and technology collaborations in the coming months.

India-Peru FTA unlikely to happen soon

On a separate note, Union Commerce and Industry Minister Piyush Goyal said on Friday that India does not expect to conclude a Free Trade Agreement (FTA) with Peru anytime soon, as differences persist regarding market access for several products. However, the minister added that negotiations with Canada are progressing well and talks with Israel are continuing despite the ongoing West Asia crisis.

"There are certain concerns. There are many products where we cannot offer them market access. So I do not see the Peru FTA happening very soon," Goyal said while responding to a question asked by ANI on the sidelines of Toy Biz International B2B Expo 2026.

Responding to concerns over a global economic slowdown, Goyal said India's hosting of more than 50 international visitors at Bharat Mandapam reflects the country's economic success story.

"Well, it's a clear sign of success story of India, making India, Aatmanirbhar Bharat. Prime Minister Narendra Modi has consistently encouraged Indian industry to focus on quality, economies of scale and sustainability. And I have absolutely no doubt that the toy industry is poised for a very remarkable future going forward," he said.

With ANI Inputs