Image Source – The Hawk
Kyrgyzstan FM Zheenbek Kulubaev Moldokanovich during India-Central Asia Dialogue
- “India is one of the oldest civilizations. We put special focus on ties with India.”
- “We are sincere friends of India.”
- “India is a strategic partner for all countries in Central Asia.”
India’s Perspective: Opportunities in Central Asia
From India’s perspective, this dialogue presents:
- Chances to expand in Central Asia and extend trade routes.
- Trade possibilities between Kyrgyzstan, a “sincere friend of India,” and its relations with China, often referred to as a “true friend.”
Kyrgyzstan’s Geographical Location and Borders
Kyrgyzstan, officially the Kyrgyz Republic, is a landlocked country in Central Asia situated within the Tian Shan and Pamir mountain ranges. It borders:
- Kazakhstan to the north,
- Uzbekistan to the west,
- Tajikistan to the south,
- China to the east and southeast.
Key Points of the India-Kyrgyzstan Bilateral Investment Treaty
On June 5, 2025, Kyrgyzstan’s Foreign Minister Zheenbek Kulubaev Moldokanovich and India’s Finance Minister Nirmala Sitharaman signed a protocol and exchanged ratification instruments for a new Bilateral Investment Treaty (BIT), replacing the 2000 agreement. This updated BIT aims to:
- Strengthen economic ties and encourage cross-border investments.
- Provide a stable and secure investment climate focused on sustainable development.
- Balance investor rights with sovereign regulatory power, including:
- Elimination of the most favored nation (MFN) clause.
- Exceptions for policy space in areas like environmental protection, public health, and security.
- An improved Investor-State Dispute Settlement regime requiring exhaustion of local remedies before international arbitration.
- Exclude domains such as local administration, taxation, government purchasing, and mandatory government services to ensure policy flexibility.
This agreement marks a significant advancement in bolstering economic cooperation and developing a transparent investment environment between India and Kyrgyzstan.
China’s Role in Kyrgyzstan’s Economy and the BRI
China continues to emphasize its strong bilateral relationship with Kyrgyzstan, focusing on strategic partnership and economic cooperation under the Belt and Road Initiative (BRI). As Kyrgyzstan’s largest economic and trade partner, China has made considerable investment in infrastructure and developmental initiatives. China supports Kyrgyzstan’s development path and opposes external interference in its domestic affairs.
Strengthening India-Kyrgyzstan Economic Ties
In summary, the Indian Finance Minister and Kyrgyzstan’s Foreign Minister have jointly promoted bilateral financial ties through the signing of this revised investment treaty, signaling a shared commitment to deepening economic cooperation and investment security.
Key Citations :
https://akipress.com/news:833955:Kyrgyzstan_and_India_discuss_financial_cooperation
