Press Information Bureau

Government of India

Ministry of Finance

27-July-2016 20:40 IST

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved Bilateral Investment Treaty (BIT) between India and Cambodia.

The Treaty seeks to promote and protect investments from either country in the territory of the other country with the objective of increasing bilateral investment flows. The Treaty encourages each country to create favourable conditions for investors of the other country to make investments in its territory and to admit investments in accordance with its laws.

The Treaty is the first Bilateral Investment Treaty in accordance with the text of the Indian Model BIT, approved by the Cabinet in December, 2015.

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AKT/VBA/SH

Bilateral Investment Treaty fosters protection and admission of foreign investments, encouraging increased bilateral investment flows. The Bilateral Investment Treaty establishes a framework to promote and protect cross border investments by creating mutually favourable conditions for investors, obliging each party to encourage and admit investments in accordance with its domestic laws, and aligning the agreement with the Indian Model BIT to facilitate increased bilateral investment flows.