India signs Bilateral Investment Treaty with Uzbekistan at Tashkent

NEW DELHI: India and Uzbekistan have signed a Bilateral Investment Treaty (BIT) that assures appropriate protection to investors from both countries, in light of relevant international precedents and practices.

The treaty was signed by finance minister Nirmala Sitharaman and Uzbek deputy prime minister Khodjayev Jamshid Abdukhakimovich in Tashkent, the finance ministry said in a statement on Friday. "The signing of the BIT reflects both nations' shared commitment towards enhancing economic cooperation and creating a more robust and resilient investment environment," the ministry said.




The treaty 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.

"However, while providing such investor and investment protection, balance has been maintained with regard to the state's right to regulate and thereby provides adequate policy space," the ministry said.



The treaty is expected to pave the way for increased bilateral investments, benefiting businesses and economies in both countries, it said.

Trade between the two countries stood at $689.7 million in 2023, up from $316.7 million in 2014. According to the Statistics Agency of Uzbekistan, India exported goods worth $254.5 million to Uzbekistan in the first four months of 2024.