The India-Israel Bilateral Investment Agreement (BIA) officially came into force on July 4, 2026, aimed at creating a secure, predictable, and investor-friendly climate. In a major departure from India’s past treaties, this agreement includes portfolio investments such as shares, stocks, bonds, and corporate debt. Under the new pact, India has reduced the domestic local remedies exhaustion period for Israeli investors to three years instead of the standard five years defined in the 2015 Model Bilateral Investment Treaty (BIT), allowing faster access to international arbitration. Think tank GTRI noted that this expanded exposure might widen India’s vulnerability to investor-state disputes beyond traditional Foreign Direct Investment (FDI). The treaty grants national treatment across all sectors except land and real estate, allowing governments to maintain separate rules for foreign ownership in those areas. Israel stands as the first OECD member with which India has enacted such an agreement, a crucial step as broader FTA negotiations remain slow due to the West Asia crisis.