Which of the following statements accurately describe India’s recent (2024) steps in economic diplomacy and reforms to improve domestic investment facilitation?
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The India–Uzbekistan Bilateral Investment Treaty (BIT) provides direct entry to international arbitration without the need to first pursue local legal remedies.
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The National Infrastructure Readiness Index (NIRI) evaluates only Smart Cities and does not include indicators related to private sector investment.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Neither Statement 1 nor Statement 2 is correct.
Statement 1 is incorrect. The India–Uzbekistan BIT (2023/24 framework) follows India’s revised BIT model, which generally requires investors to exhaust local remedies for a specified period before approaching international arbitration. This ensures that domestic judicial systems get the first opportunity to resolve disputes.
Statement 2 is also incorrect. The National Infrastructure Readiness Index (NIRI), developed to support the PM Gati Shakti vision, assesses overall infrastructure preparedness of states and UTs, not just Smart Cities. It includes multiple indicators such as logistics efficiency, project readiness, digital infrastructure, and private investment participation, making it a comprehensive tool for investment facilitation.
Thus, both statements are not accurate in describing India’s recent economic diplomacy and investment-related reforms.