Why in the News?

Government of the Republic of India and the Government of Republic of Uzbekistan signed a Bilateral Investment Treaty (BIT) at Tashkent. The signing of the BIT reflects both nations’ shared commitment towards enhancing economic cooperation and creating a more robust and resilient investment environment. The BIT is expected to pave the way for increased bilateral investments, benefiting businesses and economies in both countries.

About BIT

• These are reciprocal agreements between two countries to promote and protect foreign private investments in each other’s territories.
• These treaties generally provide a mechanism for settling disputes between investors and the country of investment.
• The most preferred mode of settling such disputes is arbitration, where parties agree to have their dispute decided by a neutral person (the arbitrator) instead of going to court.
  • On the basis of rules and procedure, arbitration may be institutional (administered by an arbitral institution as per its rules) or ad hoc (mutually arranged by the parties).

About Uzbekistan

• Capital: Tashkent
• Currency: Uzbekistani Som
• Official language: Uzbek
• Political System: Semi-Presidential Constitutional Republic
• President: Shavkat Mirziyoyev
• Bordered: Kazakhstan to the northwest and north, Kyrgyzstan and Tajikistan to the east and southeast, Afghanistan to the south and Turkmenistan to the southwest.

Map of Uzbekistan