New Delhi [India], September 9 (ANI): Israel's Minister of Finance Bezalel Smotrich on Monday said that the bilateral investment agreement signed with India would provide a strong push for private companies to invest in each other's economies.

'The bilateral investment agreement that I signed today with the Indian Minister of Finance gives a strong tailwind for private companies to come and invest in each other's economies... Indian companies can feel completely secure investing in Israel and Israeli companies can feel secure investing in India...' Smotrich told ANI.

Emphasizing the broader context of the agreement, Smotrich highlighted common challenges and shared values that bind the two nations together. He said, 'Israel and India have a lot in common, both in the past and in present... Both our nations have to contend with lethal attacks by Islamic terrorism... The joint economic potential of Israel and India is tremendous. It sits on these very same values of democracy, freedom of religion, and human dignity, and democracy... Both of our governments highly encourage these investments and create an ecosystem that gives security and insurance for these investments years ahead...'

He also spoke about the discussions of the Free Trade Agreement (FTA) between the two countries. 'We just spoke about this now with Commerce Minister Piyush Goyal. Our joint teams are working on forming the exact formula for this to happen. I am sure that we will together find the relative advantages of each side that will allow each side to get what it wants from this agreement... I believe that in the coming months, we will complete the process... The volume of trade (between the two countries) has doubled in recent years. We can multiply it by three or four times. No reason that it shouldn't happen...' Smotrich said.

Reiterating Israel's alignment with India's economic priorities, the minister underlined his country's support for Prime Minister Narendra Modi's flagship initiative. 'Israel was the first to implement Prime Minister Modi's 'Make in India' vision. There are Israeli companies that are already working in cooperation with Indian firms...' Smotrich added.

The remarks came on the day India and Israel signed a new Bilateral Investment Agreement (BIA) aimed at strengthening reciprocal investments and expanding economic cooperation between the two nations, according to an official statement by Israel's Ministry of Finance.

At the center of the visit, Smotrich and India's Finance Minister Nirmala Sitharaman signed the agreement in New Delhi on Monday. The statement noted that Israel has become the first OECD member state with which India has signed such a strategic agreement, in line with India's new model for investment treaties.

The new pact will promote reciprocal investments between investors from both countries, ensuring certainty and protection while contributing to enhanced trade and investment flows. It replaces the previous agreement signed in 1996, which was terminated in 2017 as part of India's broader policy on investment treaties, the Ministry of Finance said.

The official statement further explained that the signing followed months of intensive work between the Chief Economist's teams at Israel's Ministry of Finance and their counterparts in India. Both ministers underscored the strong economic relationship between the two countries, rooted in shared strategic interests, and reaffirmed their commitment to cooperation in areas such as innovation, infrastructure development, financial regulation, and digital trade. They also agreed to explore avenues for collaboration within regional development banks.

Smotrich invited Sitharaman for a reciprocal visit to Israel, while both sides agreed to jointly examine the establishment of a bilateral financial protocol to improve financing conditions for Israeli exporters. The Israeli finance minister further noted that his ministry is considering opening a representation in India to strengthen institutional ties and advance joint economic projects, according to the statement.

The delegation led by Smotrich included senior officials from the Ministry of Finance and the Securities Authority: Director General Ilan Rom, Chief Economist Dr. Shmuel Abramzon, Accountant General Yahli Rothenberg, and Chairman of the Israel Securities Authority Seffy Zinger. During their stay, officials are holding meetings with Indian counterparts to advance cooperation between the two economies.

The statement from Israel's Ministry of Finance also expressed appreciation to the Embassy of Israel in New Delhi for its role in facilitating the agreement, noting that its close cooperation was instrumental in achieving this milestone. (ANI)