Saturday, 12 July 2014

BIPA Bilateral Investment Promotion and Protection Agreement

MEANING: Bilateral Investment Promotion and Protection Agreement (BIPA) is one such bilateral treaty which is defined as an agreement between two countries (or States) for the reciprocal encouragement, promotion and protection of investments in each other's territories by the companies based in either country (or State).

PURPOSE
The purpose of these agreements is to create such conditions which are favourable for fostering greater investments by the investors of one country in the territory of the other country. Such agreements are beneficial for both the countries because they stimulate their business initiatives and thus enhance their prosperity

INDIA: With liberalisation of the foreign investment policy of India, the Government undertook negotiations with a number of countries and entered into Bilateral Investment Promotion & Protection Agreements (BIPAs) with them.

This was done with a view to provide predictable investment climate to foreign investments in India as well as to protect Indian investments abroad

The Government of India has, so far, signed BIPAs with 83 countries out of which 72 BIPAs have already come into force and the remaining agreements are in the process of being enforced. 

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