India and Uzbekistan Ink Bilateral Investment Treaty to Boost Investor Confidence

On Friday, India and Uzbekistan signed a Bilateral Investment Treaty (BIT) to enhance investor confidence between the two nations. The treaty, signed by Finance Minister Nirmala Sitharaman and Deputy Prime Minister Khodjayev Jamshid Abdukhakimovich, assures protection and provides measures for dispute resolution and transparency, while maintaining state regulatory rights.

India and Uzbekistan have taken a significant stride in fostering economic cooperation by signing the Bilateral Investment Treaty (BIT) on Friday. This treaty aims to bolster investor confidence between the two nations.

The agreement was signed in Tashkent by India's Finance Minister Nirmala Sitharaman and Uzbekistan's Deputy Prime Minister Khodjayev Jamshid Abdukhakimovich. An official statement highlighted that the treaty assures robust protection measures for investors from both countries, adhering to international precedents and practices.

The BIT promises a minimum standard of treatment and non-discrimination, offering an independent arbitration forum for dispute settlements. It also safeguards investments against expropriation, ensures transparency, and provides provisions for transfers and compensation for losses. Importantly, the treaty maintains a balance with the state's right to regulate, providing adequate policy space.

This signing marks a shared commitment to enhance economic cooperation, paving the way for increased bilateral investments which will benefit businesses and economies in both India and Uzbekistan. The Overseas Direct Investment (ODI) from India to Uzbekistan stood at USD 20 million from April 2000 to August 2024, with key sectors including pharmaceuticals, amusement parks, automobile components, and hospitality receiving notable investments.

(With inputs from agencies.)