Israel and India are set to finalise an investment protection agreement and are expected to sign it in the coming months, according to a statement from Israel's Finance Ministry on Tuesday.

Finance Minister Bezalel Smotrich and the ministry’s chief economist Shmuel Abramzon held a meeting with Indian Ambassador to Israel J P Singh to discuss this matter along with other economic topics, though the ministry did not give any more details.

"Strengthening economic relations with India is among my objectives," Smotrich stated following the Jerusalem meeting, describing India as a "good friend of Israel."

An investment protection agreement is a type of deal where both countries work to reduce risks for investors by guaranteeing fair treatment and removing limits on the movement of capital and profits.

The ministry said that India has become one of Israel’s key trade partners globally and especially in Asia and noted that trade and investment between the two countries are expected to grow sharply as diplomatic and security relations continue to improve.

The total trade between India and Israel in 2024 was nearly 4 billion dollars.

"We saw the deepening of economic ties between us in recent years, in areas such as defense exports and infrastructure," Smotrich asserted.

"The potential to deepen our economic collaboration is huge. It can harness our combined technological strength, India's demographic size, and the geo-strategic location of both nations."