India and Uzbekistan on Friday signed a bilateral investment treaty to bolster investor confidence in both countries.
The Indian government and the Republic of Uzbekistan signed a treaty in Tashkent. The agreement was signed by Finance Minister Nirmala Sitharaman and Uzbekistan's Deputy Prime Minister Khodjayev Jamshid Abdukhakimovich.
The BIT between India and Uzbekistan guarantees protection for investors from both countries. This agreement is based on relevant international standards and practices, according to an official statement.
It will 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, it said.
The treaty also provides for protection to investments from expropriation and provides for transparency, transfers and compensation for losses, it said.
However, it said, 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 treaty is expected to boost bilateral investments, benefiting businesses and economies in India and Uzbekistan.
Overseas Direct Investment from India to Uzbekistan was $20 million during April 2000 to Aug. 2024.
Notable investments by Indian companies include those in the fields of pharmaceuticals, amusement parks, automobile components, and the hospitality industry.
(With Inputs From PTI)
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