To boost the bilateral economic relationship between India and Uzbekistan, a Bilateral Investment Treaty was signed between the two countries in Tashkent, Uzbekistan, on 27 September 2024. The treaty provides a framework to protect and safeguard the interests of investments made by Indian investors in Uzbekistan and Uzbek investors in India.

Who signed the Bilateral Investment Treaty?

The Bilateral Investment Treaty between India and Uzbekistan was signed by the Indian Minister for Finance and Corporate Affairs, Nirmala Sitharaman and Deputy Prime Minister of Uzbekistan, Khodjayev Jamshid Abdukhakimovich, in Tashkent on 27 September 2024.

Nirmala Sitharaman was on an official visit to Uzbekistan to attend the 9th Board of Governors meeting of the Asian Infrastructure Investment Bank (AIIB).

Features of the Bilateral Investment Treaty

Based on the best international precedents and practices, the Bilateral Investment Treaty provides legal protection to investments made by nationals of one country in another country.
It protects the investor if the government nationalises the industry in which the investor from another country has invested.
It provides a level playing field for companies operating in another country by ensuring a minimum standard of treatment and non-discrimination.
The treaty also provides for an independent arbitration mechanism if there is any dispute related to investment.
The treaty also provides transparency, transfers, and compensation for losses subject to a country’s right to regulation, providing adequate policy space.
The treaty is expected to boost the business confidence of investors in both countries and facilitate cross-border investment.

Indian Investment in Uzbekistan

According to the Ministry of External Affairs, India's total investment in Uzbekistan is around $61 million. The majority of investment has been in pharmaceuticals, amusement parks, automobile components, and the hospitality industry.

Indian companies have also expressed interest in investing in Uzbekistan's healthcare, textiles and auto components, agriculture and food processing, and mining and jewellery sectors.

Also, read about the 9th AIIB Board of Governors meeting in Samarkand

About Uzbekistan

Uzbekistan is a landlocked country in Central Asia. It became an independent country on 31 August 1991 after the collapse of the Soviet Union.

The country lies between two great rivers, the Syr Darya (ancient name Jaxartes River) and the Amu Darya (ancient name Oxus River).

Capital: Tashkent

Currency: sum

President: Shavkat Mirziyoyev