Chinmaya IAS Academy – Current Affairs Chinmaya IAS Academy – Current Affairs
India and Uzbekistan recently signed a Bilateral Investment Treaty (BIT) in Tashkent, marking a significant development in their bilateral relations.
Understanding a Bilateral Investment Treaty (BIT)
A BIT is a mutual agreement between two countries, aimed at safeguarding investments made by individuals and businesses from one state in the other. India updated its BIT framework in 2015, replacing the 1993 version. The 2015 Model BIT serves as the foundation for renegotiating existing agreements and for incorporating investment-related clauses in Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs).
Key Features of the BIT
- National Treatment: Foreign investors are ensured the same treatment as domestic investors.
- Protection from Expropriation: This provision limits a state’s power to seize or nationalise foreign investments.
- Dispute Resolution: Investors must first seek resolution through local legal channels before turning to international arbitration.
India-Uzbekistan Relations
- Energy Security: India has secured an agreement with Uzbekistan for the supply of uranium ore concentrates.
- Defence Cooperation: The countries engage in joint military exercises, such as “DUSTLIK.”
- Economic Ties: India ranks among Uzbekistan’s top 10 trading partners for 2023-24.