New Delhi, Sept. 10 -- India and Israel have signed a bilateral investment agreement aimed at stepping up mutual flows, complete with a shield for investors, assurance of fair treatment on both sides and an independent dispute resolution mechanism (via arbitration).

In the Indian government's words, the pact "carefully balances investor protection with the state's regulatory rights, preserving sufficient policy space for sovereign governance." In recent years, India's stance on such treaties had tilted that scale too far into its sovereignty zone for the comfort of global investors.

This year, the Centre reformed its treaty model to make it more investor-friendly. The latest deal, with hopes pinned on fintech innovation and broader tech...