India, Uzbekistan sign investment treaty to boost investor confidence

India and Uzbekistan signed a Bilateral Investment Treaty (BIT) to enhance investor confidence in both countries. The treaty was formalized in Tashkent by the Union Minister for Finance and Corporate Affairs, Ms. Nirmala Sitharaman, and Uzbekistan's Deputy Prime Minister, Mr. Khodjayev Jamshid Abdukhakimovich. The BIT ensures appropriate protection for investors from both nations, reflecting relevant international standards and practices. According to an official statement, the treaty aims to bolster investor comfort by establishing a minimum standard of treatment and non-discrimination alongside provisions for independent arbitration for dispute resolution.

The BIT further protects investments from expropriation and promotes transparency, facilitating transfers and compensation for losses. While ensuring investor protection, the treaty maintains a balance with the state’s regulatory rights, providing adequate policy space. This signing signifies a mutual commitment to enhancing economic cooperation and creating a robust investment environment, which is expected to increase bilateral investments that will benefit businesses and economies in both countries. Notably, Overseas Direct Investment (ODI) from India to Uzbekistan reached US$ 20 million from April 2000 to August 2024, with significant investments in pharmaceuticals, amusement parks, automobile components, and hospitality sectors.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.