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India and Uzbekistan signed Bilateral Investment Treaty (BIT)

Posted 28 Sep 2024

2 min read

The signing of the BIT between both nations will promote economic cooperation and create a more robust and resilient investment environment

  • It will increase the comfort level and boost the confidence of investors. 

About BIT

  • BIT is a reciprocal agreement for according protection to investments by nationals and companies of one State in another State.
  • India approved new Model BIT text in 2015, which replaced Indian Model BIT, 1993.
    • Since then, Model text 2015 is used for (re)negotiations of BITs and investment chapters of FTAs/ Economic Partnership Agreements.
  • Key Features of Model BIT 
    • National Treatment: Similar treatment as domestic investors. 
    • Protection from expropriation: Limiting each country’s ability to take over foreign investments in its territory.
    • Settlement of Disputes: Exhaust local remedies before commencing international arbitration.
    • Other: Enterprise based definition of investment, etc. 
A comprehensive map of Uzbekistan, displaying its political boundaries.

India - Uzbekistan Relations

Uzbekistan is India’s key Partner in the Central Asian Region.  Different dimensions of engagement includes 

  • Economic relations: India is among Uzbekistan's top 10 trade partners (2023-24).
  • Security and Defense cooperation: E.g. Joint military exercise "DUSTLIK".
  • Multilateral engagement: Both countries cooperate in various international forums like the UN, G20, BRICS, and SCO.
  • Energy Security: Signed contract with Uzbekistan for supplying uranium ore concentrates.
  • People-to-people ties: There's an estimated Indian community of 14,000 in Uzbekistan. 

 

  • Tags :
  • Bilateral Investment Treaty
  • BIT
  • India- Uzbekistan
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