BILATERAL
INVESTMENT TREATY INDIA & UAE : ECONOMY
NEWS:
Bilateral Investment Treaty between India and the United Arab Emirates, comes
into effect
WHAT’S
IN THE NEWS?
The India-UAE Bilateral Investment Treaty (BIT),
effective from August 31, 2024, replaces the expired BIPPA, ensuring investment
protection and fostering economic cooperation.This treaty aims to enhance
bilateral investments by boosting investor confidence and providing a clear
dispute resolution framework.
Bilateral
Investment Treaty (BIT) between India and the UAE: Key Points
- Signed: February 13, 2024, in Abu
Dhabi.
- Came into Effect: August 31, 2024, after the
previous BIPPA expired on September 12, 2024.
- FDI: UAE contributes 3% of
India's total FDI (~$19 billion from April 2000 to June 2024).
- ODI: India invested ~$15.26
billion in the UAE (5% of total ODI from April 2000 to August 2024).
Objectives
and Features of the BIT
- Investor Protection: Ensures non-discrimination
and minimum standards of treatment.
- Dispute Resolution: Provides arbitration while
preserving the state’s regulatory rights.
- Key Provisions:
- Closed asset-based
definition of investment.
- Protection from
expropriation.
- Exceptions for taxation and
local governance.
- Mandatory exhaustion of
local remedies for three years before arbitration.
Source
: https://pib.gov.in/PressReleasePage.aspx?PRID=2062692