The Bilateral Investment Treaty (BIT) signed in June, 2019, enters into force with effect from 5^th June 2025. 

• This new BIT replaces the earlier agreement enforced in 2000, ensuring continuity in the protection of investments between the two nations.

India-Kyrgyzstan Bilateral Investment Treaty (BIT)

• The BIT balances the investor rights with the sovereign regulatory powers of both countries, and reflects a shared commitment to create a resilient and transparent investment climate. 
• Key Features of the BIT
  • Definition of Assets: Enterprise-based definition with an inclusion and exclusion list & clarifies investment characteristics: capital commitment, profit expectation, risk assumption, etc.
  • Exclusions for Policy Space: Excludes local government, government procurement, taxation, compulsory licenses, etc.
  • Removes the Most Favored Nation (MFN) clause: Which previously allowed investors to selectively import favorable provisions from other treaties signed by the Host State. 
    • This removal will ensure more consistent treatment.
  • The BIT contains General and security exceptions: The attempt is to carve out a policy space for the State. 
    • General exceptions E.g., Protection of environment, ensuring public health and safety, etc.
  • Revised dispute resolution mechanism: Requires investors to first use local remedies before international arbitration, promoting alternative dispute resolution.