BIT assures appropriate protection to Uzbekistan investors in India and Indian investors in the Republic of Uzbekistan, in light of relevant international precedents and practices

The Bilateral Investment Treaty (BIT) between the Government of the Republic of India and the Government of Republic of Uzbekistan was signed by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman and H.E. Mr. Khodjayev Jamshid Abdukhakimovich, Deputy Prime Minister of Uzbekistan, today, at Tashkent.

The BIT between India and Uzbekistan assures appropriate protection to Uzbekistan investors in India and Indian investors in the Republic of Uzbekistan, in light of relevant international precedents and practices. It will 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. However, while providing such investor and investment protection, balance has been maintained with regard to State’s right to regulate and thereby provides adequate policy space.

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.

Investor protection secured through treaty: minimum standards, non discrimination and arbitration with regulatory space preserved. The Bilateral Investment Treaty between India and Uzbekistan assures reciprocal investor protection by providing a minimum standard of treatment, non-discrimination, protection against expropriation, transparency obligations, and guarantees for transfers and compensation; it also provides for independent arbitration for investor-state disputes while preserving the State's right to regulate.