Context:
Cabinet approves bilateral investment treaty with U.A.E.
India – UAE Bilateral Investment Treaty:
- Bilateral Investment Treaty (BIT) – Reciprocal agreement for according protection to investments by nationals and companies of one State in another State.
- Aim – To boost the inflow of foreign direct investments (FDI)
- Key provisions of India UAE BIT –
- Treatment of investors – Investors of partner nation to receive similar treatment as domestic investors.Corporate Social Responsibility (CSR) – Voluntarily incorporate internationally recognized standards of CSR.
- Settlement of Disputes – Exhaust local remedies before commencing international arbitration
India and BITs:
- New BIT Model – Introduced in 2016
- Number of BITS – 74
- Among these 74, notice of termination has been issued to 68 countries based on the model BIT 2015
- Number of BITs still in force – 6
India – UAE:
- Diplomatic relations established in – 1972
- Free Trade Agreement – Signed in 2022
- UAE is India’s 3rd largest trading partner.
- UAE emerged as 4th largest investor in India in FY23.
- Multilateral Cooperation – I2U2 and IMEC
Source: The Hindu
Previous Year Question
Consider the following statements:
1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.
2. “Textile and Textile articles” constitute an important item of trade between India and Bangladesh.
3. In the last five years, Nepal has been the largest trading partner of India in South Asia.
Which of the statements given above is/are correct?
[UPSC Civil Service Exam – 2020 Prelims]
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
Answer: (b)
Explanation:
Statement 1 is not correct. The value of Indo-Sri Lanka trade has not consistently increased in the last decade. It registered a downfall post 2014-15.
Statement 3 is not correct. Bangladesh has been India’s largest trading partner in South Asia followed by Nepal in the last five years.
