India-Israel investment agreement in force: Modi, Netanyahu discuss enhanced bilateral ties

Prime Minister Narendra Modi, in a telephone call with Israeli PM Benjamin Netanyahu, reviewed the sustained progress in India-Israel Special Strategic Partnership

The telephonic conversation comes in light of a bilateral investment agreement between India and Israel that came into force on Saturday, which claims faster dispute resolution and stronger investor protection whilst preserving sovereign policy-making space for the partner nations.

The deal is expected to improve investment between the two countries, which currently stands less than $1 billion.


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The agreement, which was signed in September 2025, allows investors at least three years to exhaust domestic legal remedies for dispute settlement before initiating international arbitration.

Although India’s 2016 model bilateral investment treaty text stipulates a five-year local remedy period, the government has relaxed its provisional constraints for partner nations, such as the UAE and now Israel.

The agreement text was made public on Saturday.

The conflict in West Asia is continuing for over five months now without any permanent solution.

Read more: India-Israel investment pact comes into effect

During the conversation, the two leaders reaffirmed their commitment towards strengthening bilateral cooperation across various sectors.

In light of the developments in West Asia, the two leaders exchanged their views on the situation.

Iran said on Thursday that it is in the final stage of drafting an agreement with Oman on the Strait of Hormuz. Meanwhile, The Israeli military reported the deaths of two Israeli soldiers—the first incident since the agreement with Hezbollah in June—due to an explosion in southern Lebanon Israel's military said Thursday.

The Strait of Hormuz is a crucial artery of global commerce and energy supply. Around one-fifth of the world's oil and natural gas would pass through the waterway at the mouth of the Persian Gulf, before the beginning of the conflict in February.

The two leaders have agreed to remain in touch.