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What is the core structural focus of the 2024 India–UAE Bilateral Investment Treaty (BIT) within India’s international investment strategy?
Question

What is the core structural focus of the 2024 India–UAE Bilateral Investment Treaty (BIT) within India’s international investment strategy?

A.

Proposes joint sovereign funds and links INR swap with UAE banks.

B.

Focuses on pre-establishment rights and UAE-based arbitration.

C.

Assures post-establishment investor confidence via standard and national treatment.

D.

Aims at GCC-wide tax regulation under India-led digital framework.

Correct option is C

The correct answer is (c) Assures post-establishment investor confidence via standard and national treatment.
• The India–UAE BIT 2024 follows India’s Model BIT (2016), emphasizing post-establishment protection rather than pre-entry rights.
• It ensures National Treatment and Most-Favoured-Nation (MFN) treatment to investors after investment is made.
Information Booster
• India revised its BIT framework in 2016 to reduce exposure to investor–state disputes.
• UAE is among India’s top foreign direct investment (FDI) sources.
• The BIT replaces older investment protection agreements with a balanced, state-centric approach.
• Investor–State Dispute Settlement (ISDS) under the new BIT is limited and conditional.
Additional Knowledge
• India terminated several old BITs between 2016–2018.
• National Treatment means foreign investors are treated at par with domestic investors.
• MFN clause prevents discrimination between foreign investors of different countries.
• BITs are separate from Double Taxation Avoidance Agreements (DTAA).

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