The BIPPA agreement, or Bilateral Investment Promotion and Protection Agreement, is a crucial agreement between Nepal and India. The agreement is aimed at promoting and protecting foreign investments by providing a legal framework for investors from both countries.
The BIPPA agreement between Nepal and India was signed on October 21, 2011, during the state visit of Indian Prime Minister Dr. Manmohan Singh to Nepal. This agreement was an effort to encourage Indian investors to invest in Nepal and to improve economic ties between the two countries. The agreement was ratified by the Nepali Parliament on June 26, 2012, making it a legally binding agreement between the two countries.
Under the BIPPA agreement, investors from India and Nepal are entitled to receive fair and equitable treatment, protection, and security for their investments in each other`s countries. Both countries have committed to protecting the investments of each other`s investors and providing them with a transparent, predictable, and conducive environment.
The BIPPA agreement also includes a mechanism for dispute resolution, in case of any disputes between investors and the host country. This mechanism ensures that conflicts are resolved in a fair and timely manner, without affecting the investment climate between the two countries.
The agreement has been beneficial to both Nepal and India. Indian investors have invested in several sectors in Nepal, including hydropower, tourism, and manufacturing. The agreement has also encouraged Nepali investors to invest in India, especially in the agriculture and manufacturing sectors.
In conclusion, the BIPPA agreement between Nepal and India is a vital agreement for both countries, as it promotes and protects foreign investments. The date of the agreement was October 21, 2011, and it was ratified by the Nepali Parliament on June 26, 2012. This agreement has benefited both countries, and its implementation has resulted in increased economic cooperation and development.