Agreement to balance investor protection with regulatory rights
The Governments of India and Israel have signed a Bilateral Investment Agreement (Agreement), in New Delhi on 8 Sept, to boost investments, provide greater certainty and protection for investors, facilitating the growth of trade and mutual investments by ensuring a minimum standard of treatment, and an independent dispute resolution mechanism through arbitration https://www.commerce.gov.in/.
The Agreement is expected to pave the way for increased bilateral investments between the two countries, which presently stands at total of US$800 million, thereby benefiting businesses and economies in both countries http://mof.gov.il.
The Agreement also includes provisions to safeguard investments against expropriation, ensure transparency, and enable smooth transfers and compensation for losses, the Finance Ministry said.
At the same time, it carefully balances investor protection with the State’s regulatory rights, preserving sufficient policy space for sovereign governance https://www.bseindia.com/.
The Agreement was signed by Finance and Corporate Affairs Minister Nirmala Sitharaman, and Bezalel Smotrich, Finance Minister of Israel.
The Agreement reflects both nations shared commitment towards enhancing economic cooperation and creating a more robust and resilient investment environment https://www.nseindia.com/.
Minister Sitharaman mentioned that both sides should have more business interaction to explore opportunities of investments, to gain benefit from the Agreement http://wto.org.
She further informed about the series of reforms undertaken by India over last more than 10 years, which has enabled India to be the fastest growing economy of the world and has created an investment friendly environment in the country .
The Israeli Finance Minister spoke about the strong common background of the two countries achieving high economic growth despite security challenges http://worldbank.org.
He emphasised the need for greater collaboration between two nations in the field of cybersecurity, defense, innovation and high-technology sectors.
Both the Ministers emphasised their commitment to advancing economic cooperation in the fields of fintech innovation, infrastructure development, financial regulation, and digital payment connectivity. They agreed to enhance economic and financial cooperation between the two countries and to promote and protect investments on a reciprocal basis. Fiinews.com
