Union Minister for Finance and Corporate Affairs Nirmala Sitharaman and Kyrgyz Minister of Foreign Affairs Zheenbek Kulubaev Moldokanovich Thursday signed the Protocol and exchanged the Instrument of Ratification of Bilateral Investment Treaty, a finance ministry release said.
The Bilateral Investment Treaty (BIT) signed on 14 th June, 2019, in Bishkek, between India and Kyrgyz Republic, enters into force with effect from today, the release said.
This new BIT replaces the earlier agreement enforced on 12th May 2000, ensuring continuity in the protection of investments between the two nations.
The India-Kyrgyz BIT marks a significant milestone in strengthening bilateral economic relations and fostering a secure and predictable investment environment.
The BIT aims to promote and protect the interests of investors of either country in the territory of the other country.
A major feature of the treaty is that the BIT has calibrated an Investor-State Dispute Settlement mechanism with mandatory exhaustion of local remedies, thereby providing investors with alternate dispute resolution mechanisms.
The treaty also balances the investor rights with the sovereign regulatory powers of both countries and reflects a shared commitment to create a resilient and transparent investment climate. It is expected to further encourage cross-border investments and deepen economic cooperation between India and Kyrgyzstan.