India to send model BIT to Cabinet, protect overseas investors

Countries sometimes make special agreements called investment treaties to protect businesses that invest money in each other's countries.

India has been reviewing its model of such an agreement and will soon send it to the Cabinet, the group of top ministers, for approval.

For a long time, the agreement focused on protecting foreign companies investing in India.

Now, Indian companies are investing a lot of money in other countries too, so the government wants to protect them as well.

This is a brand new part of the negotiations.

In recent years, the amount of money coming into India compared to money going out has dropped sharply.

That happened because foreign investors took a lot of money out and Indian companies invested more abroad.

The fall in net investment has also weakened India's currency.

Some people think foreign investors are scared to invest in India because of fears about law enforcement agencies, but the Economic Affairs Secretary says that is not the reason.

She says investors look for returns and stability, which India offers.

The new agreement will decide what protections both sides get.