The Union Cabinet on Wednesday approved signing and ratification of the Bilateral Investment Treaty (BIT) between India and Belarus to increase investment flows between the two countries.
Prime Minister Narendra Modi chaired the Cabinet meeting.
"The agreement is expected to improve the confidence of investors resulting in an increase in Foreign Direct Investment (FDI) and Overseas Direct Investment (ODI) opportunities and this will have a positive impact on employment generation," the Finance Ministry said in a statement.
The signing and ratification of the treaty between the two countries will work as a strategic initiative as Belarus is a member of the Eurasian Economic Union (EAEU).
India has already initiated the BIT text with the Kyrgyz Republic and is in talks with the Russian Federation for a new BIT, based on the Model BIT text.