The Bilateral Investment Promotion and Protection Agreement (BIPPA) between India and Nepal is an agreement that was signed in 2011. The agreement aims to create an investment-friendly environment for Indian investors in Nepal and vice versa.
In the BIPPA agreement, both countries agree to protect each other`s investments in their respective countries. This agreement ensures that Indian investors who invest in Nepal are entitled to the same protection as Nepalese investors. Similarly, Nepalese investors in India are entitled to the same protection as Indian investors.
The BIPPA agreement provides a framework for resolving disputes between investors and the government. It establishes a mechanism for resolving disputes that may arise between investors and the government of either country. This mechanism includes the appointment of an arbitrator who can help resolve any disputes that may arise.
For Indian investors, the BIPPA agreement provides a number of benefits. It provides protection from expropriation or nationalization of investments by the Nepalese government, protection from discriminatory treatment, and the right to transfer profits and dividends earned in Nepal to India.
Similarly, for Nepalese investors, the BIPPA agreement provides protection from expropriation or nationalization of investments by the Indian government, protection from discriminatory treatment, and the right to transfer profits and dividends earned in India to Nepal.
The BIPPA agreement has been instrumental in promoting investment between India and Nepal. It has encouraged Indian investors to invest in Nepal and has also encouraged Nepalese investors to invest in India. This has led to increased economic ties between the two countries.
In conclusion, the BIPPA agreement between India and Nepal is an important agreement that promotes investment and economic ties between the two countries. The agreement ensures that both Indian and Nepalese investors are protected and provides a framework for resolving disputes. This has led to increased investment and economic activity between the two countries and has helped to strengthen their overall relationship.