Revamping India's Bilateral Investment Treaties: Aligning with Global Norms

India is revamping its model Bilateral Investment Treaty (BIT) to better align with modern global investment norms, while safeguarding its sovereign rights. This upgrade aims to provide stronger investment protection and attract foreign investments, especially in emerging sectors, as the country negotiates new BITs with several global partners.

India is set to introduce a revamped model for its Bilateral Investment Treaty (BIT), aimed at aligning with the demands of a dynamic global investment environment while safeguarding its sovereign rights and regulatory space. Chief Economic Adviser V Anantha Nageswaran highlighted the importance of this revision during a recent webinar addressing India's investment climate.

With almost a decade since the last model BIT review, significant changes in global investment ecosystems and international jurisprudence have emerged. India plans to update its BIT framework to reflect these modern challenges, ensuring the country remains an attractive investment destination for medium enterprises by strengthening investment protections.

Finance Minister Nirmala Sitharaman previously underscored the need for a more investor-friendly approach within the 2025-26 Budget, emphasizing robust foreign investment as crucial for economic growth. As India negotiates new BITs with several global partners, it aims to balance investor protection with state sovereignty.

(With inputs from agencies.)