In geopolitics, not every agreement signed between nations deserves celebration. Many bilateral treaties are dressed up in diplomatic jargon and then quietly forgotten, their impact fading into bureaucratic oblivion. But the Bilateral Investment Agreement (BIA) signed in New Delhi between Finance Minister Nirmala Sitharaman and her Israeli counterpart, Bezalel Smotrich, is different. This one matters, and it matters deeply.

The significance of this pact goes beyond investment flows and legal clauses. It is about trust, strategic intent, and the future trajectory of the India–Israel partnership. At its core, it is a signal to the world that these two democracies are ready to forge a new path together, one that blends economic cooperation with geopolitical alignment.

To understand why this is historic, consider the context. In 2017, India terminated dozens of old bilateral investment treaties after realising they left the country vulnerable to investor–state arbitration claims. These older agreements tilted heavily in favour of foreign investors, often undermining India’s sovereign right to regulate its economy. Since then, India has developed a new, stricter, India-centric treaty model. This updated framework offers investor protection, but on India’s terms, carefully balancing openness with sovereignty.

Most Western nations have been hesitant to sign under this new model. Yet Israel has now become the first OECD country to do so. This is more than a legal endorsement; it is a vote of confidence in India’s economic governance and an acknowledgement that India’s terms are fair and workable. By taking this step, Israel is positioning itself as a trusted first mover, signalling that it believes in India’s rise and is........

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