Investment Protection
India-Kyrgyzstan bilateral investment treaty takes effect Thursday, 6 years after signing
This story was originally published at 19:36 IST on 5 June 2025
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NEW DELHI – Finance Minister Nirmala Sitharaman and Minister of Foreign Affairs of Kyrgyz Republic Zheenbek Kulubaev Moldokanovich on Thursday signed the Protocol and exchanged Instrument of Ratification of the Bilateral Investment Treaty, making it effective, six years after signing it. The bilateral pact between the two countries was signed in June 2019 in Bishkek.
"This new Bilateral Investment Treaty replaces the earlier agreement enforced on May 12, 2000, ensuring continuity in the protection of investments between the two nations," the finance ministry said in a release. The treaty aims to promote and protect interests of investors of either country in the territory of the other country, the release said.
According to the ministry, the agreement balances 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," the ministry said.
Some of the key features of the investment treaty include an emphasis on sustainable development in the Preamble and the removal of the "most favoured nation" tag. "Most favoured nation tag has in the past allowed investors to selectively import favourable substantive provisions from other treaties concluded by the Host State," according to the release.
The agreement also has calibrated investor-state dispute settlement mechanism with mandatory exhaustion of local remedies, thereby, providing investors an alternate dispute resolution mechanism.
Another key feature of the bilateral trade agreement is the exclusion of matters relating to local government, taxation, government procurement, services supplied as part of governmental authority and compulsory licences, in order to retain sufficient policy space with the government in such matters, the release said.
India has little bilateral trade with Kyrgyzstan with exports worth just $46.26 million in 2024-25 (Apr-Mar) and imports worth just $10.52 million. End
US$1 = INR 85.79
Reported by Priyasmita Dutta
Edited by Tanima Banerjee
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