NEW DELHI, Sept. 8 -- India and Israel have signed a bilateral investment agreement to strengthen investor protections and create a framework for expanding trade and investment between the two nations, the Ministry of Finance said in a statement Monday.

The pact was signed in New Delhi by finance minister Nirmala Sitharaman and her Israeli counterpart, Bezalel Smotrich.

According to the statement, the agreement will "provide greater certainty and protection for investors, facilitating growth of trade and mutual investments by ensuring a minimum standard of treatment, and an independent dispute resolution mechanism through arbitration."

It also includes safeguards against expropriation, provisions for transparency, and rules to ensure s...