India and Uzbekistan Sign Bilateral Investment Treaty

On 27th September 2024, India and Uzbekistan signed a Bilateral Investment Treaty (BIT) in Tashkent, aimed at enhancing investor confidence between the two nations, with the agreement signed by Finance Minister and Uzbekistan's Deputy Prime Minister.

Key Points

Assured Protection for Investors: The BIT assures appropriate protection for investors from both countries, aligning with relevant international precedents and practices, thereby boosting confidence among investors.
Minimum Standards and Dispute Resolution: The treaty guarantees a minimum standard of treatment and non-discrimination for investors, while also providing an independent arbitration forum for dispute settlement, enhancing investor comfort levels.
Investment Protection Measures: The agreement protects investments from expropriation and includes provisions for transparency, transfer of funds, and compensation for losses, establishing a secure environment for investors.
Balance with State Regulation: While offering investment protection, the BIT maintains a balance with the state's right to regulate, ensuring adequate policy space for both nations.
Commitment to Economic Cooperation: The signing of the BIT reflects the shared commitment of both nations to enhance economic cooperation and create a robust investment environment, expected to pave the way for increased bilateral investments, benefiting businesses and economies on both sides.
Historical ODI from India to Uzbekistan: India’s Overseas Direct Investment (ODI) in Uzbekistan reached USD 20 million between April 2000 and August 2024, with notable investments in pharmaceuticals, amusement parks, automobile components, and the hospitality industry.