India and Uzbekistan Ink Landmark Bilateral Investment Treaty

India and Uzbekistan have formalized a Bilateral Investment Treaty to protect investors and enhance economic cooperation, signed by India's Finance Minister Nirmala Sitharaman and Uzbekistan's Deputy Prime Minister Khodjayev Jamshid Abdukhakimovich. This treaty aims to boost investor confidence and bilateral trade between the two nations.

India and Uzbekistan have entered into a Bilateral Investment Treaty (BIT) designed to provide robust protection for investors from both nations, according to a statement released by India's Ministry of Finance on Friday. The treaty aims to bolster investor confidence by ensuring a minimum standard of treatment, non-discrimination, and an independent arbitration forum for dispute resolution.

The terms of the BIT protect investments from expropriation and ensure transparency, financial transfers, and compensation for losses. The agreement maintains a balance between investor protection and a state's right to regulate, thereby preserving sufficient policy space.

Union Minister for Finance and Corporate Affairs Nirmala Sitharaman and Uzbekistan's Deputy Prime Minister Khodjayev Jamshid Abdukhakimovich signed the treaty in Tashkent. The Ministry of Finance noted that the BIT signifies a shared commitment to boosting economic cooperation and creating a resilient investment climate, fostering increased bilateral investments and benefiting both countries.

According to official data from the Indian embassy in Uzbekistan, India ranks among Uzbekistan's top 10 trade partners, with bilateral trade valued at USD 756.60 million. India's major exports include pharmaceutical products, mechanical equipment, vehicle parts, services, frozen buffalo meat, optical instruments, and mobile phones.

Conversely, India's imports from Uzbekistan primarily comprise fruit and vegetable products, services, fertilizers, juice products and extracts, and lubricants. Total Indian investments in Uzbekistan stand at USD 61 million, as per embassy records.