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The Union Cabinet chaired by Prime Minister Narendra Modi has approved a Bilateral Investment Treaty (BIT) between India and Cambodia. The treaty seeks to promote and protect investments from either country in the territory of the other country with the objective of increasing bilateral investment flows. It encourages each country to create favourable conditions for investors of the other country to make investments in its territory and to admit investments in accordance with its laws.
The treaty is the first Bilateral Investment Treaty in accordance with the text of the Indian Model BIT, approved by the Cabinet in December 2015.