India and Israel have signed a bilateral investment agreement aimed at expanding trade and financial cooperation, even as Tel Aviv faces growing political isolation over its genocide in Gaza.
The deal was inked in New Delhi during the three-day visit of Israel’s far-right Finance Minister Bezalel Smotrich, who met his Indian counterpart Nirmala Sitharaman.
It marks the first bilateral investment pact India has signed with a member of the Organization for Economic Cooperation and Development (OECD), according to an Israeli government statement.
India’s Finance Ministry described the deal as a “historic milestone” that will foster cooperation in fintech, infrastructure, financial regulation and digital payments.
Sitharaman also emphasised collaboration in “cybersecurity, defence, innovation and high-technology.”
Smotrich, sanctioned by several Western governments for his links to illegal West Bank settlements, called the agreement “an important strategic step for our joint vision.”
“The agreement reached today between Israel and India reflects our economic growth, innovation and mutual prosperity,” he wrote on X.
“This agreement will open new opportunities for investors in both countries, strengthen Israeli exports, and provide businesses with the certainty and tools to grow in one of the world’s largest and fastest-growing markets.”
Bilateral trade between the two countries reached $3.9 billion in 2024, with mutual investments worth around $800 million.
Defence and security cooperation remain the backbone of ties, with India serving as Israel’s largest weapons buyer.
Deepening ties amid Gaza genocide
The signing comes as Israel faces a genocide case at the International Court of Justice and war crimes charges at the International Criminal Court over its genocide in Gaza, which has killed more than 64,500 Palestinians since October 2023.
Despite this, India has moved closer to Israel under Prime Minister Narendra Modi’s Hindu nationalist government.