New Delhi, Jul 22 (PTI) India has requested the European Union for a written text proposal so that the negotiations on a standalone investment agreement may be commenced, the government has told a parliamentary panel.
The government was responding to a recommendation made by the Parliamentary Committee on External Affairs.
The committee cited the government’s reply in the report titled “Action Taken by the Government on the Observations/Recommendations contained in the Tenth Report of the Committee on External Affairs on the subject ‘India and Bilateral Investment Treaties”.
The Committee on External Affairs had noted that negotiations with the USA on a bilateral investment treaty (BIT) are being held since 2009, the report said.
The Investment Incentive Agreement signed in 1997 with the US Development Finance Corporation has been extended till December 2021 and a new Investment Incentive Agreement is being negotiated, it said.
With regard to the EU, preparations are underway on both sides to start negotiations on a stand-alone investment protection agreement.
The Committee said it feels that signing of BITs/Investment Protection Agreements in high-technology manufacturing/sectors with the USA and EU is in keeping with the government’s initiatives of Atmanirbhar Bharat and Make in India, and would benefit the country’s manufacturing sector especially in high-tech goods.
“The Committee, therefore, desire that the process of negotiations should be started and concluded early so as to contribute towards increasing investment in priority sectors and high technology manufacturing,” the report said.
In its reply, the government said the India-USA IIA was signed in 1997 (the total investment support till date being of USD 2.88 billion comprising of loan of USD 0.99 billion, investment guarantee of USD 1.5 billion, insurance of USD 13 million and equity support only of USD 100 million).
India received the request for the negotiation of a new Agreement from the USA in June 2020, it said.
This proposal was analysed and in view of the possibility of limiting the policy space of the country and chances of bringing in of claim under dispute arbitration mechanism under the said agreement, it was decided to terminate the 1997 Agreement and renegotiate a replacement Agreement, the government said in its reply.
The latest text of the Agreement under negotiation is to provide investment protection to investment support of a US organization i.e., US Development Finance Corporation (USDFC), it said.
With regard to India-EU BIT, both India and EU have agreed for a stand-alone investment protection agreement and the DEA has requested EU for their written text proposal, so that the negotiations of a standalone investment agreement may be commenced, the government said. PTI ASK ASK TIR TIR
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.