MAINS Current Affairs includes India–Israel Bilateral Investment Agreement (BIA) & 11 Years of Digital India Programme

INTERNATIONAL RELATIONS

1. India–Israel Bilateral Investment Agreement (BIA)

Context: The India–Israel Bilateral Investment Agreement (BIA), signed in September 2025, came into force on 4 July 2026.

• Israel became the first OECD country to sign an investment treaty under India’s 2016 Model Bilateral Investment Treaty (BIT).

About the BIA

• Replaces the 1996 Bilateral Investment Treaty, which India terminated in 2017 as part of its BIT policy overhaul.
• Aims to provide a stable, transparent and predictable investment environment.
• Expected to increase bilateral investments, currently around US$800 million.

Key Provisions of the Agreement

Definition of Investment

• Protects only investments made in accordance with host country laws.
• Investment must involve:
  • Commitment of capital
  • Expectation of profit
  • Assumption of risk
• Excludes:
  • Portfolio investments
  • Speculative assets

Right to Regulate

• Recognises the sovereign right of both countries to regulate investments for:
  • Public health
  • Environmental protection
  • Taxation
  • National security
  • Public interest
• Prevents treaty shopping by denying benefits to shell companies or investors restructuring solely to access treaty protections.

Taxation Provisions

• Provides a comprehensive tax carve-out, limiting challenges against taxation measures through international arbitration.
• Tax disputes are generally excluded except in cases involving expropriation.
• Investors must comply with all domestic tax laws and regulations.

Dispute Settlement Mechanism

• Investors must first attempt consultation and negotiation.
• Mandatory exhaustion of domestic legal remedies before international arbitration.
• Arbitration permitted only:
  • After domestic proceedings conclude, or
  • After 5 years, whichever is earlier.

National Security Exception

• Allows either country to adopt measures necessary for protecting national security.
• Such decisions are non-justiciable, meaning international arbitral tribunals cannot review them.

India–Israel Bilateral Relations

Diplomatic Relations

• India recognised Israel in 1950.
• Full diplomatic relations established in 1992.
• 2022 marked 30 years of full diplomatic ties.

Defence & Security

• Israel is among India’s largest defence suppliers.
• Cooperation includes:
  • AWACS
  • Drones
  • Missile systems
  • Surveillance technology
• Supports Make in India and defence modernisation.

Economic Relations

• Bilateral trade:
  • FY 2023–24: US$6.53 billion
  • FY 2024–25: US$3.75 billion (excluding defence)
• Cooperation in:
  • Innovation
  • Technology
  • Agriculture
  • Water management
  • Space
• India–Israel Industrial R&D and Technological Innovation Fund (I4F):
  • US$40 million fund for joint R&D projects.

Multilateral Cooperation

Both countries cooperate through:

• I2U2 (India–Israel–UAE–USA)
• Space collaboration
• Food parks
• Climate and environmental technologies

Significance for India

Defence & Strategic Security

• Access to advanced defence technologies.
• Strengthens indigenous defence manufacturing.

Investment Promotion

• Improves investor confidence through predictable investment rules.
• Encourages long-term FDI.

Agriculture & Water

• Access to Israeli expertise in:
  • Drip irrigation
  • Precision farming
  • Water conservation
  • High-yield agriculture

Technology & Innovation

• Boosts collaboration in:
  • AI
  • Cybersecurity
  • Start-ups
  • Deep technology
  • Space research

Strategic Importance

• Strengthens India’s Act West Policy.
• Deepens India’s strategic presence in West Asia.

Challenges

• Regional geopolitical instability in West Asia.
• Balancing relations with Israel and Arab countries.
• Decline in bilateral trade in recent years.
• Security risks affecting investments.

Way Forward

• Promote greater bilateral investments under the new BIA.
• Expand cooperation in innovation, AI, semiconductors and critical technologies.
• Strengthen collaboration in agriculture, water management and clean energy.
• Increase private-sector partnerships and joint R&D.
• Deepen strategic cooperation while maintaining balanced engagement in West Asia.

Conclusion

The India–Israel Bilateral Investment Agreement (2026) marks a significant milestone in bilateral economic relations by providing a secure, transparent and rules-based investment framework. Along with growing cooperation in defence, technology, innovation, agriculture and strategic affairs, the BIA is expected to strengthen the comprehensive strategic partnership between the two countries and boost long-term investment flows.

GOVERNANCE

2. 11 Years of Digital India Programme

Context: Digital India Programme completed 11 years on 1 July 2026.

• It has transformed governance, service delivery, financial inclusion and Digital Public Infrastructure (DPI), making India a global digital leader.

Digital India: Key Achievements

Digital Economy

• Forms the backbone of India’s Digital Public Infrastructure (DPI).
• Digital economy contributes 12–14% of GDP, expected to reach ~20% in the next decade.
• Boosted innovation, startups and technology adoption.

Global Digital Leadership

• UPI handles nearly 49% of global real-time digital payment transactions.
• India Stack Global and Global DPI Repository launched during G20 Presidency (2023).
• MoUs signed with 24 countries for cooperation on India Stack and DPI (digital identity, payments and service delivery).

Nine Pillars of Digital India

1. Broadband Highways

• Universal broadband for digital governance and economic growth.
• Broadband subscribers crossed 58 crore (March 2026).

2. Universal Mobile Connectivity

• Expanding mobile and internet connectivity to rural India.
• 97% Gram Panchayats (2.15 lakh) connected through BharatNet.
• Nearly 7 lakh km optical fibre laid.

3. Public Internet Access

• Digital services through:
  • 5 lakh+ Common Service Centres (CSCs)
  • 6 lakh Post Offices

4. e-Governance

• Paperless, integrated and citizen-centric governance.
• Major platforms:
  • DigiLocker
  • National Single Sign-On (SSO)
  • Online public services

5. e-Kranti

• Digital delivery of government services.
• Major platforms:
  • e-Hospital
  • e-Sanjeevani
  • e-Courts

6. Information for All

• Promotes transparency and citizen participation.
• Platforms:
  • MyGov
  • Open Government Data (OGD)

7. Electronics Manufacturing

• Electronics production increased from ₹1.9 lakh crore (2014-15) to ₹12 lakh crore (2026).
• India is the 2nd largest mobile phone manufacturer.

8. IT for Jobs

• IT & ITeS sector revenue: US$283 billion (FY25).
• 2,100+ Global Capability Centres (GCCs) employing 26 lakh professionals.
• Focus on AI, analytics, cybersecurity and engineering.

9. Early Harvest Programmes

• Quick digital governance initiatives:
  • Biometric attendance
  • Government email
  • Public Wi-Fi
  • eBooks
  • SMS alerts
  • Digital communication systems

Major Flagship Initiatives

JAM Trinity

• Jan Dhan + Aadhaar + Mobile
• Enabled Direct Benefit Transfer (DBT), financial inclusion and welfare delivery.

DigiLocker

• Secure digital document wallet.
• 69 crore users.
• 850+ crore digital documents issued.

Unified Payments Interface (UPI)

• Completed 10 years in 2026.
• Instant, secure and low-cost digital payments.
• Operational in 9 countries.

Digital Health

ORS (Online Registration System)

• Online hospital appointments.

eHospital

• Digital hospital management.

eBloodBank

• Better blood inventory management.

eSanjeevani

• Telemedicine services across India.

Tele-MANAS

• Free mental health counselling.

Digital Commerce

Government e-Marketplace (GeM)

• Transparent and paperless public procurement.

ONDC

• Open digital commerce network for buyers and sellers.

Digital Agriculture

AgriStack

• Farmer-centric Digital Public Infrastructure.

e-NAM

• Online agricultural marketing platform.

Kisan e-Mitra

• AI chatbot for agriculture information and government schemes.

Digital Education

DIKSHA

• Digital school education and teacher training.

SWAYAM

• Online higher education courses.

SWAYAM Prabha

• Educational DTH channels.

Digital Skilling

PMGDISHA

• Rural digital literacy programme.

FutureSkills Prime

• Training in AI, Cloud, Cybersecurity and Data Analytics.

Skill India Digital Hub (SIDH)

• Digital platform for skilling, certification and employment.

IndiaAI Mission

• AI infrastructure, education and responsible AI development.

Significance of Digital India

• Improved ease of governance and service delivery.
• Promoted financial inclusion through DBT and UPI.
• Enhanced transparency and reduced corruption.
• Boosted startup ecosystem and digital innovation.
• Increased digital literacy and inclusion.
• Strengthened India’s Digital Public Infrastructure (DPI).
• Positioned India as a global leader in digital payments and governance.

Challenges

• Digital divide between urban and rural areas.
• Connectivity gaps in remote and LWE-affected regions.
• Cybersecurity and data privacy concerns.
• Low digital literacy among vulnerable groups.
• Dependence on imported semiconductor components.
• Need for stronger digital infrastructure.

Way Forward

• Achieve universal broadband connectivity.
• Bridge the digital divide through digital literacy.
• Strengthen cybersecurity and data protection.
• Promote indigenous electronics and semiconductor manufacturing.
• Expand AI, cloud computing and emerging technologies.
• Deepen global cooperation through India Stack and Digital Public Infrastructure.

Conclusion

Over the last 11 years, Digital India has transformed governance, public service delivery and the digital economy through world-class Digital Public Infrastructure. The next phase should focus on inclusive digital access, indigenous technology, cybersecurity and AI-driven innovation to support the vision of Viksit Bharat 2047.

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