3 weeks ago

India reviews BIT rules to draw more foreign capital

India reviews BIT rules to draw more foreign capital
'We're looking at the red flags': DEA secy hints foreign investment rules may become more investor friendly · businesstoday.in

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.

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

Sources

Related news