Report on the Israel-India Bilateral Investment and Trade Agreement

Introduction

On September 8, 2025, the nations of Israel and India signed a new bilateral investment and trade agreement in New Delhi. The treaty, signed by Israeli Finance Minister Bezalel Smotrich, replaces a previous accord from 1996. This development marks a significant enhancement of economic relations and is positioned to substantially contribute to the United Nations Sustainable Development Goals (SDGs).

Strategic Importance and Contribution to Global Partnerships (SDG 17)

The agreement is a prime example of strengthening global partnerships for sustainable development, directly addressing the objectives of SDG 17 (Partnerships for the Goals). Key points include:

• It is the first such treaty between India and a Western-oriented member of the Organisation for Economic Co-operation and Development (OECD).
• It establishes a robust framework for international cooperation, enhancing the means of implementation for a global partnership focused on sustainable development.
• The treaty promotes a universal, rules-based, and equitable multilateral trading system that is vital for achieving the SDGs.

Fostering Economic Growth and Innovation (SDG 8 & SDG 9)

The core objective of the agreement is to stimulate economic activity, which aligns directly with several key development goals.

Alignment with Specific SDGs:

1. SDG 8: Decent Work and Economic Growth
   • The treaty is designed to promote sustained, inclusive, and sustainable economic growth by creating a secure environment for foreign direct investment.
   • By encouraging investment, it aims to stimulate job creation and achieve higher levels of economic productivity in both countries.
2. SDG 9: Industry, Innovation, and Infrastructure
   • The agreement facilitates capital flow into key sectors, supporting the development of resilient infrastructure and promoting inclusive and sustainable industrialization.
   • It fosters an environment conducive to innovation by protecting investments in technology and research, thereby enhancing scientific research and upgrading the technological capabilities of industrial sectors.

Broader Implications for Sustainable Development

Beyond its primary economic focus, the treaty has the potential to impact other interconnected development goals. By fostering a stable economic relationship, it can indirectly support:

• SDG 1 (No Poverty): Economic growth generated through increased trade and investment is a critical driver for poverty reduction.
• SDG 10 (Reduced Inequalities): A well-regulated investment framework can help ensure that the benefits of economic growth are distributed more equitably.

Conclusion

The bilateral investment treaty between Israel and India is a strategic initiative that strengthens their economic ties while reinforcing their commitment to the 2030 Agenda for Sustainable Development. By creating a predictable and fair investment climate, the agreement serves as a powerful tool for advancing SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 17 (Partnerships for the Goals), setting a precedent for international cooperation focused on achieving a sustainable and prosperous future.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Relevant Sustainable Development Goals (SDGs)

1. SDG 8: Decent Work and Economic Growth
   • The article discusses a bilateral investment and trade agreement between Israel and India. Such agreements are fundamental tools for stimulating economic activity, creating jobs, and fostering sustainable economic growth in the participating countries. By encouraging investment, the agreement directly supports the objectives of SDG 8.
2. SDG 17: Partnerships for the Goals
   • This goal is central to the article. The signing of a bilateral agreement between two nations is a clear example of a global partnership (Target 17.17). The agreement aims to strengthen economic ties, promote trade, and facilitate investment, which are key aspects of international cooperation for sustainable development. The article highlights this as a “strategic step” in the relationship between India and Israel.

2. Specific Targets Identified

1. Target 17.3: Mobilize additional financial resources for developing countries from multiple sources.
   • The bilateral investment agreement is explicitly designed to encourage and facilitate investment between Israel and India. This directly aligns with the goal of mobilizing financial resources, specifically foreign direct investment (FDI), to support India’s economic development.
2. Target 17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system.
   • While this is a bilateral, not multilateral, agreement, it contributes to the broader goal of a rules-based international trading system. The agreement replaces an older treaty from 1996, suggesting an update to the rules governing trade and investment between the two countries to create a more stable and predictable environment for businesses.
3. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships.
   • The agreement itself is a form of a public-public partnership (government-to-government) that is intended to foster private sector investment and trade. It creates the framework and security needed for private companies in both nations to engage in cross-border business, thereby promoting public-private cooperation.

3. Indicators for Measuring Progress

1. Implied Indicator: Volume of Bilateral Trade
   • The article focuses on a “trade agreement.” A primary indicator of its success would be the total value of goods and services traded between Israel and India. An increase in this volume would signify progress towards the economic goals of the agreement. This relates to the spirit of indicators measuring trade openness and integration.
2. Implied Indicator: Foreign Direct Investment (FDI) Flows
   • As an “investment agreement,” a key metric for its effectiveness would be the amount of foreign direct investment flowing between the two countries. The agreement is intended to boost investor confidence and increase these flows, which can be measured in monetary terms (e.g., US dollars). This aligns with official SDG indicator 17.3.1, which tracks FDI.

Summary Table of SDGs, Targets, and Indicators

Source: jpost.com