Uzbekistan-India Bilateral Investment Treaty (BIT)

GS Paper II International Relations

India and Uzbekistan recently signed a Bilateral Investment Treaty (BIT) in Tashkent, Uzbekistan.

Key Features of the BIT

Bilateral Investment Treaty

Investor Protection: Ensures appropriate protection for Uzbek investors in India and Indian investors in Uzbekistan.
Boosts Investor Confidence: Assures minimum standard of treatment and non-discrimination for investors.
- Provides an independent forum for dispute settlement via arbitration.
Other Provisions: Includes provisions for transparency, transfers, and compensation for losses.

Economic Cooperation: Reflects the shared commitment of both nations to enhancing economic cooperation.
Investment Environment: Aims to create a robust and resilient investment environment.

Bilateral Investment Treaties (BITs) are agreements between two countries aimed at promoting and protecting foreign private investments.
India’s journey with BITs began in the mid-90s, with the goal of creating a favourable environment for foreign investors.
- India signed its first BIT with the UK in 1994.
However, the challenges associated with these treaties have led to a reevaluation of their approach.

Mutual Economic Benefits: Expected to increase bilateral investments, benefiting businesses and economies of both countries.

Military Collaboration: Joint military exercise, DUSTLIK.
Multilateral Cooperation: Active cooperation in platforms like UN, G20, BRICS, and SCO.
Trade Relation of India Uzbekistan: Significant growth in India-Uzbekistan bilateral trade has been observed over the past five years.
Other Engagements:
- India-Central Asia framework at the India-Central Asia Summit.
- India-Central Asia Dialogue at the foreign minister level.
- Joint Working Group on Afghanistan and the Central Asia Business Council.

Bilateral Investment Treaty

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