India and Uzbekistan Sign Bilateral Investment Treaty
- 28 Sep 2024
On 27th September 2024, India and Uzbekistan signed a Bilateral Investment Treaty (BIT) in Tashkent, aimed at enhancing investor confidence between the two nations, with the agreement signed by Finance Minister and Uzbekistan's Deputy Prime Minister.
Key Points
- Assured Protection for Investors: The BIT assures appropriate protection for investors from both countries, aligning with relevant international precedents and practices, thereby boosting confidence among investors.
- Minimum Standards and Dispute Resolution: The treaty guarantees a minimum standard of treatment and non-discrimination for investors, while also providing an independent arbitration forum for dispute settlement, enhancing investor comfort levels.
- Investment Protection Measures: The agreement protects investments from expropriation and includes provisions for transparency, transfer of funds, and compensation for losses, establishing a secure environment for investors.
- Balance with State Regulation: While offering investment protection, the BIT maintains a balance with the state's right to regulate, ensuring adequate policy space for both nations.
- Commitment to Economic Cooperation: The signing of the BIT reflects the shared commitment of both nations to enhance economic cooperation and create a robust investment environment, expected to pave the way for increased bilateral investments, benefiting businesses and economies on both sides.
- Historical ODI from India to Uzbekistan: India’s Overseas Direct Investment (ODI) in Uzbekistan reached USD 20 million between April 2000 and August 2024, with notable investments in pharmaceuticals, amusement parks, automobile components, and the hospitality industry.