Mains issueGS-3Editorials03 October 2026

India's Evolving Bilateral Investment Treaty (BIT) Policy and International Investment Law

India's revised Model BIT aims to balance investor protection with regulatory sovereignty, align with evolving international investment law, and position India as a rule-shaper, reflecting lessons from past disputes and new treaty practices.

Source: thehindu.comOriginal report

Understand the issue · 1/2

Why now

The Union Budget 2025-26 announced a revamp of India's Model BIT to be more investor-friendly, and the revised model is reportedly finalized, making its implications for India's economic policy and international relations highly relevant.

Core issue

India is revising its Model Bilateral Investment Treaty (BIT), nearly a decade after the 2015 version, to make it more investor-friendly and align with evolving international investment regimes. The review is prompted by lessons from past investor-state disputes (like White Industries), India's recent treaty practices (e.g., with UAE, Uzbekistan, Israel showing greater flexibility in local remedy periods), and global shifts towards investment facilitation, sustainable development, and ISDS reforms (UNCTAD, UNCITRAL). The new model aims to provide a clear framework for future negotiations, define provisions like Most Favoured Nation (MFN) and investor obligations (counterclaims), and ensure precision in substantive protections like expropriation and Fair and Equitable Treatment (FET), positioning India as a 'rule-shaper' in international investment law.

Continue this issue

Turn the issue into an answer.

Unlock the issue map, answer-use material, grounded Mains PYQ connections and writing practice.

Unlock Mains Current Affairs