GS-2Editorials05 September 2026thehindu.com

A BIT of a reset, with a wider debate

India is in the process of revising its 2015 Model Bilateral Investment Treaty (BIT), which was criticized for heavily favoring the state's right to regulate over investor protection, thereby deterring foreign investment. The new model aims to strike a better balance. The article highlights the importance of a robust and consultative process for this revision, advocating for engagement with external experts, industry bodies, civil society, and parliamentary oversight to address concerns about 'democratic deficit' in international treaty-making, drawing parallels with practices in countries like the UK, Australia, Norway, and Colombia, and recalling the Law Commission of India's role in the 2015 revision.

India is in the process of revising its 2015 Model Bilateral Investment Treaty (BIT), which was criticized for heavily favoring the state's right to regulate over investor protection, thereby deterring foreign investment. The new model aims to strike a better balance. The article highlights the importance of a robust and consultative process for this revision, advocating for engagement with external experts, industry bodies, civil society, and parliamentary oversight to address concerns about 'democratic deficit' in international treaty-making, drawing parallels with practices in countries like the UK, Australia, Norway, and Colombia, and recalling the Law Commission of India's role in the 2015 revision.

Exam linkage

GS Paper 2: Indian Polity & Governance (Constitutional & Statutory Bodies, Parliamentary System, democratic processes); GS Paper 3: Indian Economy (External Sector, Foreign Investment, Economic Policy).

Syllabus mapping

Indian EconomyIndian Polity & GovernanceExternal Sector & Capital FlowsConstitutional & Statutory BodiesIndian Culture Art ArchitectureModern Indian HistoryIndian Society DiversityGlobalization Indian SocietyIndian Constitution

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