• India and Israel have signed a bilateral investment treaty during Bezalel Smotrich's visit to New Delhi.
• The treaty aims to enhance trade and investment while potentially laying the groundwork for a free trade agreement.
• Collaboration is anticipated in sectors like cybersecurity, fintech, and defense.
• India's trade with Israel reaches $3.9 billion, with mutual investments of about $800 million.
• Israel faces increasing global criticism over its military actions in Gaza.

India and Israel have formalized a bilateral investment treaty (BIT), marking a significant step towards bolstering economic cooperation and potentially establishing a Free Trade Agreement (FTA). The BIT was signed in New Delhi by India's Finance Minister Nirmala Sitharaman and Israel's Finance Minister Bezalel Smotrich during his visit from September 8 to 10. This treaty, notable for being India's first with a member of the Organisation for Economic Co-operation and Development (OECD), aims to enhance protection for investors and improve trade flows between the two nations, according to India Times, Al Jazeera, and TRT Global.

The agreement, described as a "historic milestone" by India's Ministry of Finance, emphasizes cooperation across various sectors, including fintech, cybersecurity, and defense. Smotrich noted that it reflects a strategic commitment to mutual prosperity, stating, “The agreement reached today between Israel and India reflects our economic growth, innovation and mutual prosperity,” as reported by India Times and Al Jazeera.

Trade between the two nations currently stands at approximately $3.9 billion, with mutual investments totaling around $800 million. The defense sector remains a critical component of their relationship, with India being Israel's largest buyer of military equipment. This investment treaty aims to bolster trade even further, potentially opening new opportunities for businesses in both countries, according to India Times and TRT Global.

Furthermore, this development occurs against a backdrop of international scrutiny over Israel's military actions in Gaza, which have drawn significant criticism and allegations of genocide. While India continues to navigate its diplomatic relations, it has consistently approached the Israel-Palestine conflict with a stance that primarily supports economic ties with Israel, as highlighted in reports by Al Jazeera and TRT Global.

Despite the controversial context, India's move towards a closer economic alignment with Israel indicates a commitment to fostering deeper bilateral relations. Critics argue that such agreements underscore the prioritization of strategic interests over humanitarian concerns in global diplomacy, a perspective shared by multiple sources including Al Jazeera and TRT Global.