India and Uzbekistan Sign Important Investment Treaty
India and Uzbekistan have signed a Bilateral Investment Treaty (BIT) to assure appropriate protection to investors from both countries. The treaty was signed by Union Minister for Finance and Corporate Affairs Nirmala Sitharaman and Khodjayev Jamshid Abdukhakimovich, Deputy Prime Minister of Uzbekistan, in Tashkent.
The Ministry of Finance stated that the BIT will increase the comfort level and boost the confidence of investors by assuring a minimum standard of treatment and non-discrimination. It also provides an independent forum for dispute settlement through arbitration.
The treaty offers protection to investments from expropriation and ensures transparency, transfers, and compensation for losses. It balances investor protection with the State’s right to regulate, providing adequate policy space.
The Finance Ministry added, “The signing of the BIT reflects both nations’ shared commitment towards enhancing economic cooperation and creating a more robust and resilient investment environment. The BIT is expected to pave the way for increased bilateral investments, benefiting businesses and economies in both countries.”
According to the Indian embassy in Uzbekistan, India is among the top 10 trade partners of Uzbekistan with bilateral trade of USD 756.60 million. Major Indian exports include pharmaceutical products, mechanical equipment, vehicle parts, services, frozen buffalo meat, optical instruments, and mobile phones. India’s imports from Uzbekistan largely consist of fruit and vegetable products, services, fertilizers, juice products and extracts, and lubricants. Total Indian investments in Uzbekistan amount to USD 61 million.
Doubts Revealed
Investment Treaty -: An investment treaty is an agreement between two countries to protect and promote investments made by people and companies from each country in the other country.
Bilateral -: Bilateral means involving two sides or countries. In this case, it means the treaty is between India and Uzbekistan.
Nirmala Sitharaman -: Nirmala Sitharaman is India’s Finance Minister. She is responsible for managing the country’s finances, including the budget and economic policies.
Khodjayev Jamshid Abdukhakimovich -: Khodjayev Jamshid Abdukhakimovich is Uzbekistan’s Deputy Prime Minister. He helps lead the government and make important decisions for the country.
Investor Confidence -: Investor confidence means that people and companies feel safe and positive about investing their money in a country because they believe their investments will be protected and treated fairly.
Dispute Resolution -: Dispute resolution is a way to solve disagreements or conflicts between people or companies, often through discussions, negotiations, or legal processes.
Economic Cooperation -: Economic cooperation means that two countries work together to improve their economies, which can include trade, investments, and other financial activities.
Bilateral Investments -: Bilateral investments are investments made by people or companies from one country into another country, and vice versa.