INSUBCONTINENT EXCLUSIVE:
Piyush Goyal, Union Minister for commerce and industry3 min read Last Updated : Oct 08 2024 | 12:08 AM IST
India has reduced the time
period for foreign investors to seek international arbitration from five years to three years as part of the recently signed investment pact
with the United Arab Emirates (UAE), a departure from its model Bilateral InvestmentTreaty (BIT).
Under the Investor-State Dispute
Settlement (ISDS) mechanism, if the Indian judicial system is unable to resolve a dispute within this shortened period, investors can resort
to international arbitration.Click here to connect with us on WhatsApp
The investment pact, signed on February 13 in Abu Dhabi, came into
between India and the UAE will boost investor confidence, provide a predictable and stable tax regime, and help investors get recourse in
we discussed today (Monday), some of our India companies believe there are some issues with the UAE and likewise some UAE companies may have
the India-UAE high-level joint task force on investments, along with Sheikh Hamed bin Zayed Al Nahyan, managing director of Abu Dhabi
and increase chances for international arbitration.
According to Delhi-based think-tank Global Trade Research Initiative (GTRI), while the
BIT may attract more UAE investment, it also raises the risk of higher arbitration claims against India
Besides, India will soon be approached by other countries to sign BITs on similar liberal terms as it is negotiating BITs with countries
such as the United Kingdom (UK) and trade blocs such as the European Union.
The GTRI said the inclusion of shares and bonds as protected
pact, the Ministry of Finance on Monday said India-UAE BIT was expected to boost confidence of the investors by assuring minimum standard of
contributing around $19 billion between April 2000 and June 2024
India, in turn, has made 5 per cent of its total overseas investments in the UAE, amounting to $15.26 billion from April 2000 to August
Such pacts boost investor confidence and aim to spur foreign investments.First Published: Oct 08 2024 | 12:08 AMIST
