India seeks Cabinet sign-off on revamped bilateral investment treaty template

At the Munich Security Conference, Finance Minister Nirmala Sitharaman announced that a fresh bilateral investment treaty (BIT) template is complete and will be submitted to the Cabinet shortly. The draft, crafted over a year and a half, addresses shortcomings of the 2016 model and promises tighter protection for investors of both nations. While the new template is being finalized, India has already signed BITs with Saudi Arabia, the United Arab Emirates, Oman and several Central Asian countries that incorporate its enhanced provisions.

Negotiations are also progressing with Canada and Russia, with a goal of sealing at least three additional agreements by December. Sitharaman highlighted criticism of the existing five-year delay before foreign investors can invoke treaty-based arbitration and indicated the government’s intent to amend that rule. She also referenced ongoing, tough talks on the India-US trade pact and broader concerns about trade imbalances with the United States and China.