3 weeks ago
India's Revamped Model BIT To Be Sent To Cabinet Soon
A Bilateral Investment Treaty is a promise between two countries.
The promise says each country will protect and treat fairly the investors from the other country.
This helps businesses feel safe when they invest in another country.
India is working on a new version of this promise.
The government wants the new version to be friendly to investors.
India also wants its own companies to be protected when they invest in other countries.
That is becoming more important because Indian businesses are going abroad more often.
The new plan is still being discussed and improved.
Soon, it will be shown to the Union Cabinet, which is a group of top government leaders.
They will decide whether to approve it.
India's finance ministry is reviewing the Model Bilateral Investment Treaty to make it more investor-friendly.
The revised Model BIT will soon be placed before the Union Cabinet for approval, Economic Affairs Secretary Anuradha Thakur said.
The review incorporates lessons from past negotiations and global practices, with consultations still underway.
Thakur said investor protection is increasingly important as India's outward direct investment grows and Indian firms expand abroad.
She dismissed concerns that a slight dip in net FDI reflects investigative agency overreach, citing record gross FDI and transparent, procedure-driven actions.
- Who
- Anuradha Thakur, Economic Affairs Secretary of India's Union Finance Ministry
- What
- Announced that the finance ministry is reviewing the Model Bilateral Investment Treaty to make it investor-friendly and will soon seek Cabinet approval
- Where
- New Delhi, India
- When
- On a Friday at a recent event (exact date not specified in the article)
- Why
- To address investor disputes, align with global practices, and protect Indian companies as their outward direct investment grows
Concern Over Enforcement Overreach
Economic Affairs Secretary's Position
Reason for decline in net FDI
Concern Over Enforcement Overreach
Some raised concerns that overreach by investigative agencies such as the Enforcement Directorate (ED) is causing capital flight and a decline in net FDI.
Economic Affairs Secretary's Position
Thakur dismissed these fears, saying most agency actions are procedure-driven and transparent, and noted that gross FDI reached a record while net FDI declined only slightly.
Key facts
- Speaker
- Anuradha Thakur, Economic Affairs Secretary
- Topic
- Review of the Model Bilateral Investment Treaty (BIT)
- Ministry
- Union Finance Ministry
- Status
- Under review; consultations underway
- Next Step
- Model BIT to be placed before the Union Cabinet for approval
- Review Basis
- Negotiation experience and global practices
- FDI Context
- Gross FDI hit a record; net FDI declined slightly last year
- Location of Remarks
- New Delhi, at an industry event
Quotes
Anuradha Thakur
Economic Affairs Secretary, Ministry of Finance, India
“The BIT is under review, and we are looking at. Many other clauses based on our experience in the negotiations and based on global practices. It is a work in progress. Consultations are underway, and we are reviewing the Model BIT (Bilateral Investment Treaty)”
deccanchronicle.com
Sources
Related news
India to send model BIT to Cabinet, protect overseas investors
India Set to Revise BIT Framework to Attract Foreign Capital
India revising Model Bilateral Investment Treaty to speed investor disputes
India Weighs Qualified MFN Rules in Bilateral Investment Treaty Overhaul
India reviews BIT rules to draw more foreign capital
India, Canada Pursue Investment Treaty Talks, Target C$70 Billion Trade
India Raises Petrol, Diesel Export Taxes, Cuts Jet Fuel Levy
India’s August GST Collections Near ₹2 Lakh Crore, Refunds Surge
Finance Ministry Flags Severe Attrition Across Regional Rural Banks
IIT Hyderabad Hosts Cybersecurity and AI Banking Fraud Hackathon
Finance Ministry Flags Global Yield and Inflation Risks for India
