On September 27, 2024, India and Uzbekistan signed a new bilateral investment treaty, which came into force in May 2025. A notable provision in the treaty is the inclusion of a provision that allows the host state to file counterclaims against investors for breach of the investor’s obligations under the treaty, including those relating to environmental or social obligations. This reflects India’s policy goal of striking a balance between investor rights and the host state’s regulatory prerogatives. The treaty could serve as a template for India’s future BITs, especially with Central Asian partners, while signalling to foreign investors the government’s determination to avoid expansive interpretations of treaty protections.