India, Uzbekistan sign bilateral investment treaty

India and Uzbekistan signed bilateral investment treaty(BIT) in Tashkent today. The BIT is expected to pave the way for increased bilateral investments, benefiting businesses in both countries.

The BIT was signed by Union Minister for Finance and Corporate Affairs Nirmala Sitharaman and Khodjayev Jamshid Abdukhakimovich, Deputy Prime Minister of Uzbekistan. The signing of the BIT reflected India and Uzbekistan’s shared commitment towards enhancing economic cooperation and creating a more robust and resilient investment environment, an Uzbek offical said.

It will ensure appropriate protection to Uzbekistan investors in India and Indian investors in Uzbekistan, in light of relevant international precedents and practices. It aims to increase the comfort level and boost the confidence of investors by assuring a minimum standard of treatment and non-discrimination, while providing for an independent forum for dispute settlement through arbitration. The BIT also provides for protection to investments from expropriation, provides for transparency, transfers and compensation for losses. Besides, balance has been maintained with regard to the states’ right to regulate and thereby provides adequate policy space.