The agreement replaces the India–Israel Bilateral Investment Treaty (BIT), 1996 which was terminated in 2017.
- It aims to promote investment while balancing investor protection with the sovereign right of governments to regulate.
- Under the Vienna Convention on the Law of Treaties (1969), there is no substantive legal difference between a "Treaty" and an "Agreement”.
About BIT
- Definition: They are reciprocal agreements between two countries that promote and protect foreign investments in each other's territories.
- Purpose: They provide a legal framework to ensure fair treatment of investors and create a stable investment environment.
- International Law: BITs come within Art. 38 (1) (a) Statute of the International Court of Justice as primary sources of obligations under public international law.
- Indian framework: India approved new Model BIT Text in 2015, which replaced Indian Model BIT, 1993.
- Since then, Model text 2015 is used for (re)negotiations of BITs and investment.
- In Budget 2025-26, the Government announced a review of the BIT framework.
- Since then, Model text 2015 is used for (re)negotiations of BITs and investment.
About India–Israel BIT
- Investment Protection: Protects investments made by investors of both countries.
- Compensation during Armed Conflict: Investors suffering losses due to War, Armed conflict or Civil unrest will receive non-discriminatory treatment regarding compensation.
- Right to Regulate: Preserves the government's authority to regulate for public health, environment, security, and public welfare.
- Investor–State Dispute Settlement: Provides a mechanism to resolve disputes through international arbitration.
