Archive · 7 Aug 2026
India revising Model Bilateral Investment Treaty to speed investor disputes
India is working on a new deal that promises fair treatment for businesses from other countries.
The deal is called a Bilateral Investment Treaty, or BIT for short.
When a foreign company has a problem in India, it usually must first ask Indian courts for help.
Waiting for the courts can take a very long time.
Under the new plan, companies would wait much less before they can take their case to international judges.
India already made the waiting time three years in its deal with the United Arab Emirates.
It used to be five years.
Reports say the waiting time could become two years in some deals.
India also wants to protect its own companies that invest in other countries.
Foreign companies are already investing more money in India than ever before, and India wants even more.
India is finalising a revised Model Bilateral Investment Treaty (BIT) for Cabinet consideration.
The revised framework would shorten the time foreign investors must exhaust domestic legal remedies before international arbitration.
The domestic remedy period was cut to three years in India's agreement with the UAE; the five-year requirement dates to the 2015 Model BIT.
The government may reduce the timeframe to two years in some bilateral negotiations, according to reports.
Gross FDI inflows rose 17.3% to $94.5 billion in FY26, while net FDI inflows jumped nearly eightfold to $7.7 billion.
- Who
- Economic Affairs Secretary Anuradha Thakur, speaking on behalf of the Centre (Government of India).
- What
- India is finalising a revised Model Bilateral Investment Treaty that would shorten the period for exhausting domestic legal remedies before investors can initiate international arbitration.
- When
- Announced on Friday at the NCAER India Policy Forum 2026; specific date not stated.
- Where
- India; the announcement was made at the NCAER India Policy Forum 2026.
- Why
- To balance stronger investor protection with India's sovereign interests, reflect evolving global investment practices, and protect Indian companies investing abroad.
- Policy document
- Revised Model Bilateral Investment Treaty (BIT)
- Announced by
- Anuradha Thakur, Economic Affairs Secretary
- Domestic remedy period under 2015 Model BIT
- 5 years
- Period in India-UAE agreement
- 3 years
- Possible new period (reported)
- 2 years
- Gross FDI inflows FY26
- $94.5 billion, up 17.3% from $80.6 billion
- Net FDI inflows FY26
- $7.7 billion, up from about $1 billion
- Event
- NCAER India Policy Forum 2026