India and Uzbekistan Sign Bilateral Investment Treaty to Strengthen Economic Cooperation

The treaty is expected to pave the way for increased bilateral investments, benefiting the business communities and economies of both India and Uzbekistan.

In a significant move to boost economic ties, India and Uzbekistan have signed a Bilateral Investment Treaty (BIT) aimed at fostering greater investment flows between the two nations. The agreement was signed in Tashkent by India's Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, and Uzbekistan's Deputy Prime Minister, H.E. Mr. Khodjayev Jamshid Abdukhakimovich.

The BIT seeks to provide strong protections for investors from both countries, ensuring a minimum standard of treatment, non-discrimination, and an independent forum for resolving disputes through arbitration. It includes provisions to safeguard investments against expropriation, ensure transparency, and provide compensation for losses. Importantly, the treaty strikes a balance between investor protection and the right of each state to regulate, thereby preserving necessary policy space for government actions.

This agreement reflects the commitment of both nations to strengthening economic cooperation and creating a more stable and secure investment environment. The treaty is expected to pave the way for increased bilateral investments, benefiting the business communities and economies of both India and Uzbekistan.