India and Uzbekistan have signed a Bilateral Investment Treaty (BIT) aimed at boosting investor confidence and enhancing economic cooperation between the two nations. The treaty was formalized by Indian Finance Minister Nirmala Sitharaman and Uzbekistan’s Deputy Prime Minister Khodjayev Jamshid Abdukhakimovich in Tashkent. This BIT assures protection for investors from both countries, providing a minimum standard of treatment and non-discrimination while facilitating dispute resolution through arbitration.
Key Provisions of the BIT
The BIT includes several crucial provisions, such as:
Protection from Expropriation: Investments are safeguarded against expropriation.
Transparency and Compensation: The treaty promotes transparency in investment operations and outlines compensation protocols for losses.
Balanced Regulatory Rights: While protecting investments, the treaty maintains a balance with the state’s right to regulate, allowing adequate policy space.