India and Republic of Uzbekistan sign Bilateral Investment Treaty in Tashkent

1. In Sept 2024, India and Uzbekistan have signed a Bilateral Investment Treaty (BIT) in Tashkent to enhance economic cooperation and promote a stronger, more resilient investment environment.

1. This agreement will increase investor confidence by providing a greater sense of security.

2. The treaty guarantees fair treatment and non-discrimination for investors.
3. It provides an option for independent arbitration to resolve disputes.
4. Both countries retain the right to regulate in the public interest while maintaining adequate policy space without compromising investor protection.

What is Bilateral Investment Treaty (BIT)? A Bilateral Investment Treaty (BIT) is a reciprocal agreement (both agree to help each other in a similar way) designed to protect investments made by nationals and companies from one country in the territory of another. India's new Model BIT text was approved in 2015, replacing the earlier 1993 Model BIT. Since 2015, this Model BIT is used for negotiating and re-negotiating BITs and investment chapters of Free Trade Agreements (FTAs) and Economic Partnership Agreements.

India - Uzbekistan Relations

1. Uzbekistan is India’s key Partner in the Central Asian Region.
2. Historical Connection: Lal Bahadur Shastri, India's 2nd Prime Minister, passed away in Tashkent, Uzbekistan in 1966, just hours after signing the Tashkent Declaration.

1. It ended the Indo-Pakistani War of 1965 through a ceasefire agreement.

3. Economic Relations: India is one of Uzbekistan's top 10 trade partners, with bilateral trade reaching USD 756 million.

4. Indian investments in Uzbekistan total USD 61 million, covering sectors such as:

1. Pharmaceuticals
2. Amusement parks
3. Automobile components
4. Hospitality industry

5. Trade Agreement Feasibility Study: In 2019, both countries agreed to conduct a feasibility study for negotiating a Preferential Trade Agreement (PTA).
6. Security and Defense Cooperation: India and Uzbekistan conducts the joint military exercise ‘DUSTLIK.’
7. Multilateral Engagement: Both countries cooperate in international forums such as the UN, G20, BRICS, and SCO.
8. Energy Security: India has signed a contract with Uzbekistan to supply uranium ore concentrates.
9. People-to-People Ties: Approximately 14,000 Indians reside in Uzbekistan.

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