- Treaty is aimed to improve confidence of investors to increase foreign investments and Overseas Direct Investment (ODI) opportunities in India.
- Existing Bilateral Investment Protection Agreement with UAE will expire in September 2024.
- BIT is a reciprocal agreement for according protection to investments by nationals and companies of one State in another State.
- Significances of BIT with UAE
- Growth and employment generation through increased investments in key sectors such as real estate, renewable energy, etc.
- UAE emerged as 4th largest investor in India in FY23.
- Mutual protection to investments in India and the UAE.
- Growth and employment generation through increased investments in key sectors such as real estate, renewable energy, etc.
- India and BITs
- Post 1991 economic reforms and up to 2015, India signed BITs with 83 countries, negotiated based on Model BIT text of 1993.
- Union Cabinet adopted new Model BIT text in 2015, due to increase in international arbitration cases under existing BITs.
- Notices of Termination of BITs based on 1993 Model were issued to 77 countries (till Sep 2021).
- Model text 2015 is used for (re)negotiations of BITs and investment chapters of FTAs/ Economic Partnership Agreements.
Key Provisions of Model BIT, 2015
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