March 16, 2006
Inching closer to a bilateral deal
(Times of India, The (KRT) Via Thomson Dialog NewsEdge) Mar. 14—NEW DELHI — Indian and Chinese economic relationship is set to get a leg up with the two countries closing in on signing a Bilateral Investment Protection Agreement (BIPA), which will help investments from across the border, some of which have been seen with suspicion in the recent past.
The details of the treaty are expected to be worked out during bilateral meetings at the official and ministerial which are scheduled for the next one month.
The move is also expected to help a large number of Indian firms including the likes of software majors TCS, Infosys and Orpat which are scaling up their presence in China.
India is ready to grant post-investment national treatment, which would give Chinese firms the same status as an Indian company.
Besides, it would allow freer repatriation and transfer of returns on investment and establishment of a dispute settlement mechanism.
"Our economic engagement with China is increasing and the BIPA is a move in that direction. Most of the issues have been agreed upon by both sides and we are close to finalising the treaty"a senior official said.
The joint economic forum meeting, scheduled later this week, is also significant as it will help in arriving at a common plank on a number issues to increase bilateral trade.