In an effort to encourage cross-border investments and deepen economic cooperation between India and Kyrgyzstan, the two countries signed a protocol for enforcement of a Bilateral Investment Treaty (BIT), with effect from June 5, 2025.
India’s Finance Minister Nirmala Sitharaman and Kyrgyz Foreign Affairs Minister Zheenbek Kulubaev Moldokanovich signed the protocol on Thursday for enforcement of the BIT that was originally signed on June 14, 2019, in Bishkek, between the Government of India and the Government of the Kyrgyz Republic.
This new BIT replaces the earlier agreement enforced on May 12, 2000, ensuring continuity in the protection of investments between the two nations, the finance ministry said in a statement.
“The India-Kyrgyz BIT marks a significant milestone in strengthening bilateral economic relations and fostering a secure and predictable investment environment. The BIT aims to promote and protect the interests of investors of either country in the territory of the other country,” it noted.
Apart from an emphasis on sustainable development in the preamble and removal of the most favoured nation (MFN) tag, the BIT contains two types of exceptions to carve out a policy space for the State, the statement added.
“The BIT contains two types of exceptions: general exceptions and security exceptions. The attempt is to carve out a policy space for the State. The general exceptions include, among others, the protection of the environment, ensuring public health and safety, and protecting public morals and public order,” it said.
Another key feature of the BIT is the exclusion of matters relating to local government, taxation, government procurement, services supplied in the exercise of governmental authority, and compulsory licenses, in order to retain sufficient policy space with the government in such matters, the Indian finance ministry said.
The agreement has calibrated the Investor-State Dispute Settlement mechanism with mandatory exhaustion of local remedies, thereby, providing investors alternate dispute resolution mechanism. It also balances the investor rights with the sovereign regulatory powers of both countries and reflects a shared commitment to create a resilient and transparent investment climate, the statement added.
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