India and Uzbekistan have signed a Bilateral Investment Treaty (BIT) aimed at providing protection to investors from both countries. The treaty ensures appropriate protection to Uzbekistan investors in India and Indian investors in Uzbekistan. This agreement is set to increase the comfort level and boost the confidence of investors by assuring a minimum standard of treatment and non-discrimination. Additionally, it provides for an independent forum for dispute settlement through arbitration. The treaty also includes provisions for protection against expropriation, transparency, transfers, and compensation for losses.
Furthermore, the statement from the Ministry of Finance highlighted that while providing protection to investors and investments, the treaty also maintains a balance with regards to the State’s right to regulate, thereby allowing adequate policy space. The signing of the BIT took place between Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, and Khodjayev Jamshid Abdukhakimovich, the Deputy Prime Minister of Uzbekistan in Tashkent. This significant agreement reflects the commitment of both nations towards enhancing economic cooperation and creating a more resilient investment environment that is expected to pave the way for increased bilateral investments benefiting businesses and economies in both countries.
According to official figures from the Indian embassy in Uzbekistan, India is among the top 10 trade partners of Uzbekistan with bilateral trade amounting to USD 756.60 million. Major items of India’s exports to Uzbekistan include pharmaceutical products, mechanical equipment, vehicle parts, services, frozen buffalo meat, optical instruments and equipment, and mobile phones. On the other hand, India’s imports from Uzbekistan consist mainly of fruit and vegetable products, services, fertilizers, juice products and extracts, and lubricants. The total Indian investments in Uzbekistan are estimated to be around USD 61 million, as per the embassy’s website.
Overall, the signing of the Bilateral Investment Treaty between India and Uzbekistan marks a significant step towards strengthening economic ties and promoting investment opportunities between the two nations. This agreement is expected to create a favorable environment for businesses and investors by providing them with the necessary protection and assurance needed to facilitate smooth investments and trade relations. With the provisions for dispute settlement and protection against expropriation in place, the BIT aims to enhance the confidence of investors and boost economic cooperation, ultimately benefiting both countries’ economies in the long run.
