3 weeks ago
India reviews BIT rules to draw more foreign capital
India wants more companies from other countries to bring their money and build things here.
A government leader named Thakur said India is looking at its rules for foreign companies.
Sometimes companies are scared to invest in another country because the rules are strict or confusing.
India is checking its special agreements with other countries, called investment treaties, to make the rules friendlier.
The government is also looking at a list of things it worries about and thinking about which worries it can set aside.
Some foreign partners want India to shorten the time companies must wait before solving disagreements.
India says that when the world is in trouble, money likes to go where it feels safe and steady.
The government is spending a lot on big projects, and private companies in India are starting to invest more, which is a good sign.
The government also says that for every one rupee spent on the prime minister's trips abroad, India gets a huge amount of foreign money back.
DEA Secretary Thakur said India is reviewing its bilateral investment treaty (BIT) model and may make foreign investment rules more investor friendly.
The review is described as a 'work in progress,' with industry consultations under way and the government setting aside parts of its negative list of red flags.
Government data shows India received around ₹66,000 in FDI for every ₹1 spent on PM Modi's foreign visits since 2021.
Private sector project announcements averaged about ₹34.8 lakh crore between 2024 and 2026, accounting for 71% of all new investment announcements, per CMIE.
Centre's capital expenditure has jumped more than five times since FY15 to ₹10.7 lakh crore in FY26, with ₹12 lakh crore budgeted for the current fiscal.
- Who
- DEA Secretary Thakur, speaking for the Government of India, with foreign investors and industry as stakeholders.
- What
- India is reviewing its bilateral investment treaty (BIT) model and considering more investor-friendly foreign investment rules to attract foreign capital.
- Where
- India
- When
- Not specified in the article; the BIT review is described as a 'work in progress' with consultations under way.
- Why
- To draw in more foreign capital amid global turmoil and the West Asia crisis, while supporting growth and stability.
Government caution
Investor-friendly reform
Foreign investment dispute rules
Government caution
Keep the negative list of 'red flags' and the 2016 treaty template, which requires foreign investors to spend five years exhausting Indian legal remedies before pursuing international arbitration.
Investor-friendly reform
Relax restrictions and shorten the dispute-resolution timeline, a key demand of some foreign partners, to attract more foreign capital amid global turmoil and the West Asia crisis.
Key facts
- Government department
- Department of Economic Affairs (DEA)
- BIT model status
- Under review; 'work in progress' with industry consultations
- FDI linked to PM Modi visits
- Around ₹66,000 received for every ₹1 spent on foreign visits since 2021 (government data)
- Private sector project announcements (2024-2026)
- Averaged ~₹34.8 lakh crore; 71% of all new announcements (CMIE)
- Centre's capex (FY26)
- ₹10.7 lakh crore; more than five times FY15
- Capex budgeted (current fiscal)
- ₹12 lakh crore
- Private sector R&D share
- ~41%, vs 75-79% in some advanced countries
Quotes
Ramesh Thakur
Deputy chief economic advisor and senior official of the U.S. Drug Enforcement Administration
“"We are looking at what the red flags are, and we have a negative list. We will set that aside, and see what is the maximum we can put out there."”
businesstoday.in
“"Capital is not simply looking for high returns; it is also looking for stability, predictability and strategic resilience."”
businesstoday.in











