India-UAE Bilateral Investment Treaty (BIT): Key Features and Implications
| Key Points | Details |
|---|---|
| Why in News | India signed a Bilateral Investment Treaty (BIT) with the UAE, effective August 31, 2024, to enhance investor confidence. The arbitration period for foreign investors is reduced from five years to three years. The treaty also covers portfolio investments like shares and bonds. |
| Arbitration Time Reduction | The arbitration period has been reduced from five years to three years for seeking international arbitration. |
| Expanded Investment Protection | The treaty includes shares, bonds, and other portfolio investments, offering broader protection to investors. |
| Investor-State Dispute Settlement (ISDS) | An ISDS mechanism is included to provide an independent forum for dispute resolution between investors and the state. |
| UAE as FDI Source | The UAE is the seventh-largest source of FDI for India, contributing 3% of total FDI inflows. |
| Commerce and Industry Minister | Piyush Goyal |