India and Uzbekistan have signed a Bilateral Investment Treaty (BIT) to assure appropriate protection to Uzbekistan investors in India and Indian investors in the Republic of Uzbekistan, the Ministry of Finance said in a statement on Friday.
*The BIT between the Indian government and the government of Republic of Uzbekistan was signed by Finance Minister Nirmala Sitharaman and Khodjayev Jamshid Abdukhakimovich, Deputy Prime Minister of Uzbekistan, at Tashkent.
*It assures appropriate protection to Uzbekistan investors in India and Indian investors in the Republic of Uzbekistan, in light of relevant international precedents and practices, an official statement said.
*It will increase the comfort level and boost the confidence of investors by assuring a minimum standard of treatment and non-discrimination while providing an independent forum for dispute settlement through arbitration, it said.
*The treaty also provides for protection to investments from expropriation, provides for transparency, transfers and compensation for losses, it said. However, it said that while providing such investor and investment protection, balance has been maintained regarding the state’s right to regulate, providing adequate policy space.
*The signing of the BIT reflects both nations’ shared commitment towards enhancing economic cooperation and creating a more robust and resilient investment environment.
*The treaty is expected to pave the way for increased bilateral investments, benefiting businesses and economies in both countries.
*Overseas Direct Investment (ODI) from India to Uzbekistan was USD 20 USD million during April 2000 to August 2024. Notable investments by Indian companies include those in the pharmaceuticals, amusement parks, automobile components, and hospitality industries.
With inputs from agencies.
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