The Union Cabinet, led by Prime Minister Shri Narendra Modi, has recently granted approval for the signing and ratification of a Bilateral Investment Treaty (BIT) between the Government of the Republic of India and the Government of the United Arab Emirates (UAE).
Objectives of the Treaty
The primary objectives of this Bilateral Investment Treaty are to enhance the confidence of investors, particularly large investors. The anticipated outcomes include a boost in Foreign Investments and increased opportunities for Overseas Direct Investment (ODI). These developments are expected to positively impact employment generation.
The approval of the Bilateral Investment Treaty is projected to bring about several advantages:
- Increased Foreign Investments: The treaty aims to attract more foreign investments into India, fostering economic growth.
- Stimulated Overseas Direct Investment (ODI): The treaty is likely to open avenues for increased Overseas Direct Investment, providing opportunities for Indian businesses abroad.
- Positive Impact on Employment: The expected rise in investments can contribute to employment generation, addressing economic concerns.
Contribution to Atmanirbhar Bharat
The approval aligns with the vision of Atmanirbhar Bharat, emphasizing self-reliance. The treaty is expected to play a pivotal role in achieving the goals of Atmanirbhar Bharat through:
- Encouraging Domestic Manufacturing: Increased investments can encourage the growth of domestic manufacturing industries.
- Reducing Import Dependence: The treaty is expected to contribute to reducing import dependence by promoting investments within the country.
- Boosting Exports: With increased investments, there is a likelihood of enhanced export capabilities, contributing to a more robust economy.
Multiple Choice Questions (MCQs):
- Who chaired the Union Cabinet for the approval of the Bilateral Investment Treaty?
a. President of India
b. Prime Minister Shri Narendra Modi
c. Finance Minister
d. Chief Justice of India
Answer: b. Prime Minister Shri Narendra Modi
- What is the primary objective of the Bilateral Investment Treaty between India and the UAE?
a. Reducing unemployment
b. Enhancing investor confidence
c. Increasing government revenue
d. Strengthening military ties
Answer: b. Enhancing investor confidence
- How is the approval of the treaty expected to contribute to Atmanirbhar Bharat?
a. By promoting import dependence
b. By discouraging domestic manufacturing
c. By reducing foreign investments
d. By encouraging domestic manufacturing and reducing import dependence
Answer: d. By encouraging domestic manufacturing and reducing import dependence