Home General Knowledge GK SPECIAL TOPIC : WHAT IS BILATERAL INVESTMENT PROMOTION AND PROTECTION AGREEMENT?
GK SPECIAL TOPIC : WHAT IS BILATERAL INVESTMENT PROMOTION AND PROTECTION AGREEMENT?
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Tuesday, 22 April 2014 10:00

 

GK SPECIAL TOPIC

 

WHAT IS BILATERAL INVESTMENT PROMOTION AND PROTECTION AGREEMENT?

With the opening up of the economies world over, each country has been trying to attract foreign capital through liberalised investment policies. In such a scenario, all investors are seeking those investment destinations which provide most protective, hospitable and profitable climate for their investments . Hence, many countries have entered into bilateral investment treaties or agreements which not only encourage capital flows into their own countries but also provide safe business environment for their own investors abroad.

Similarly as part of the Economic Reforms Programme initiated in 1991, the foreign investment policy of the Government of India was liberalised and negotiations undertaken with a number of countries to enter into Bilateral Investment Promotion & Protection Agreement (BIPAs) in order to promote and protect on reciprocal basis investment of the investors.

The BIPAs incorporate national treatment, for foreign investment and MFN treatment for foreign investments and investors, free repatriation/transfer of returns on investment, recourse to domestic dispute resolution and international arbitration for investor —State and State-State disputes, nationalization! expropriation against compensation only in public interest on a non discriminatory basis.

Government of India have, so far, (as on July 2012) signed BIPAs with 82 countries out of which 72 BIPAs have already come into force and the remaining agreements are in the process of being enforced. In addition, agreements have also been finalised and/ or being negotiated with a number of other countries.

The objective of Bilateral Investment Promotion and Protection Agreement is to promote and protect the interests of investors of either country in the territory of other country. Such Agreements increase the comfort level of the investors by assuring a minimum standard of treatment in all matters and provides for justifiability of disputes with the host country

 


Last Updated on Wednesday, 23 April 2014 07:01
 

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