What's New :
ITS 2025: Integrated Test Series & Mentorship Program for Prelims and Mains. Get Details
2nd February 2024 (10 Topics)

India-UAE Investment Treaty

Context

India and the United Arab Emirates (UAE) have solidified their economic ties through the signing and ratification of a bilateral investment treaty (BIT)

Importance for Both Nations

India and the UAE share a robust relationship, exemplified by a comprehensive strategic partnership since 2016. The UAE hosts over 3 million Indians, contributing significantly to both economies. Bilateral trade reached $84 billion in 2023, making the UAE India's third-largest trading partner and second-largest export destination.

Key Features of the Treaty

Robust Framework

  • The BIT establishes a framework focusing on mutual benefit, fair treatment, national and most-favored-nation treatment, and protection against expropriation. It encompasses various forms of investment and includes provisions for dispute resolution, transparency, corporate social responsibility, environmental protection, and human rights.

Challenges

  • Effective Implementation: Ensuring the effective enforcement of the treaty, especially concerning dispute resolution, transparency, and compliance.
  • Balancing Rights and Obligations: Striking a balance between investor rights and state obligations, considering public interest, national security, and regulatory autonomy.
  • Stakeholder Expectations: Addressing concerns from civil society, media, academia, and industry regarding the treaty's impact and implications.
  • Harmonization: Aligning the treaty with other agreements like the India-UAE Double Taxation Avoidance Agreement, Social Security Agreement, and the Regional Comprehensive Economic Partnership.

Opportunities

  • Strategic Partnership Enhancement: Leveraging the treaty to strengthen the strategic partnership, particularly amid changing regional and global dynamics.
  • Diversification: Exploring new areas of cooperation in renewable energy, space, digital economy, artificial intelligence, and biotechnology.
  • Knowledge Exchange: Promoting the exchange of best practices, experiences, and knowledge, particularly in innovation, entrepreneurship, and skill development.
  • Synergies with Initiatives: Creating linkages with platforms such as the International Solar Alliance, Coalition for Disaster Resilient Infrastructure, India-UAE Joint Working Group on Investments, and the India-UAE High-Level Task Force on Investments.

Verifying, please be patient.

Enquire Now