Archive · 6 Oct 2026
India's New Investment Treaty Framework Awaits Cabinet Approval
India is preparing a new set of rules for investment agreements with other countries.
Finance Minister Nirmala Sitharaman said the Cabinet is expected to approve the new template soon.
It has been in preparation for about one-and-a-half years.
The new rules are meant to address problems the government sees in the 2016 model.
India’s agreement with Saudi Arabia already goes beyond that older model and aims to protect investors from both countries.
India has also made similar agreements with the UAE, Oman and some Central Asian countries.
Talks are continuing with Canada, Russia and other countries.
Sitharaman said India could finish agreements with at least three more countries by December.
Canada’s talks could finish by December or early next year if progress continues as expected.
Finance Minister Nirmala Sitharaman said a new bilateral investment treaty template is expected to receive Cabinet approval soon.
The framework has been under preparation for about one-and-a-half years and is intended to address shortcomings in the 2016 model.
The recently concluded agreement with Saudi Arabia goes beyond the 2016 model and includes stronger investor-protection provisions for both countries.
India has concluded similar agreements with the UAE, Oman and some Central Asian countries, while talks continue with Canada, Russia and others.
Sitharaman said India could conclude agreements with at least three more countries by December; Canada talks may finish by December or early next year.
- Who
- India and Finance Minister Nirmala Sitharaman; negotiating partners include Saudi Arabia, Canada and Russia.
- What
- India is preparing a new bilateral investment treaty template for Cabinet approval and continuing negotiations on investment protection agreements.
- When
- The template is expected to receive Cabinet approval soon; Sitharaman said at least three more agreements could be concluded by December.
- Where
- The framework concerns India's investment treaty negotiations with other countries; Sitharaman discussed it at the Munich Security Conference.
- Why
- The government says the existing framework does not adequately serve India's interests and wants to address shortcomings as Indian companies increasingly invest overseas.
Criticism of the 2016 model
Government's rationale for a new template
Five-year domestic-remedies requirement
Criticism of the 2016 model
Investors and legal experts have criticized the requirement to pursue domestic remedies for five years before treaty-based arbitration.
Government's rationale for a new template
The government says the existing framework does not adequately serve India's interests and that a new template is needed as Indian outward investment grows.
- New template
- Expected to receive Cabinet approval soon; it has been under preparation for about one-and-a-half years.
- 2016 model
- The previous model BIT became the basis for subsequent treaty negotiations and requires foreign investors to pursue domestic remedies for five years before treaty-based arbitration against India.
- Saudi Arabia
- The recently concluded agreement goes beyond the 2016 model and includes investor-protection provisions for both countries.
- Other concluded agreements
- India has concluded similar agreements with the UAE, Oman and some Central Asian countries.
- Ongoing negotiations
- Talks are underway with several countries, including Canada and Russia.
- Potential agreements
- Sitharaman said India could conclude agreements with at least three more countries by December.
- Canada timeline
- Talks could conclude by December or early next year if progress continues as expected.
