India and Kyrgyzstan Fortify Economic Bonds with New Bilateral Investment Treaty
India and Kyrgyzstan have signed a protocol enforcing a bilateral investment treaty (BIT) to enhance economic relations and promote cross-border investments. Effective from June 2025, this new BIT replaces an earlier agreement and emphasizes sustainable development, while allowing policy space for environmental protection and public health.
- Country:
- India
The Governments of India and Kyrgyzstan have taken a significant step forward in strengthening their economic ties by signing a bilateral investment treaty (BIT). The agreement, initially signed in June 2019, is set to come into force in June 2025, and it replaces a previous treaty established in 2000.
Finance Minister Nirmala Sitharaman and Kyrgyz Foreign Affairs Minister Zheenbek Kulubaev Moldokanovich formalized the protocol on Thursday, ensuring continuity in investment protection between the two nations. The treaty aims to foster a secure and predictable environment for investors by promoting mutual interests.
A notable feature of the new BIT is its emphasis on sustainable development, the removal of the most favored nation (MFN) tag, and the provision of a dispute resolution mechanism. The treaty has calibrated exceptions for policy space, particularly in areas like environment, public health, and safety, reinforcing the sovereign regulatory powers of both countries.
(With inputs from agencies.)
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