Source: PIB
Context: India and Israel signed a Bilateral Investment Agreement (BIA) in New Delhi, witnessed by Finance Ministers of India and Bezalel Smotrich.
About India and Israel sign Bilateral Investment Agreement (BIA):
- What it is?
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- A landmark investment protection and promotion treaty between India and Israel.
- Provides a minimum standard of treatment and a framework for transparent, secure, and fair investment flows.
- Establishes a neutral dispute resolution mechanism through arbitration to protect investors.
- Aim:
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- Facilitate greater certainty, transparency, and security for investors in both countries.
- Safeguard investments against risks like expropriation, arbitrary restrictions, or policy shocks.
- Encourage mutual trade and capital flows, making investment environments more resilient.
- Balance investor protection with sovereign regulatory rights of the two governments.
- Key Agreements:
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- Protection from Expropriation: Ensures fair compensation if assets are seized or nationalised.
- Transparency Measures: Clear rules and open procedures to promote investor confidence.
- Independent Arbitration: Neutral dispute settlement mechanism outside domestic courts.
- Free Transfer & Compensation: Smooth repatriation of capital, profits, and compensation for losses.
- Sectoral Cooperation: Enhanced collaboration in fintech, infrastructure, digital payments, cybersecurity, defence, and high-tech innovation.
