India to revise Model Bilateral Investment Treaty for investor appeal

India is set to revise its Model Bilateral Investment Treaty (BIT) to enhance investor confidence and attract foreign capital, with the updated framework nearing Cabinet approval. Economic Affairs Secretary Anurag Thakur confirmed the review, stating the revised treaty will address existing concerns and improve stability for international investors amid global economic uncertainty.

The Finance Ministry is leading the review, which includes consultations on key clauses such as arbitration timelines for foreign investors. The current Model BIT, approved by the Union Cabinet in 2015, is being reassessed to align with global practices and India’s evolving investment landscape. Thakur highlighted the need to balance investor protection with the country’s dispute resolution mechanisms, particularly as Indian companies expand overseas.

The government aims to boost foreign direct investment (FDI) through the revised treaty, while also ensuring adequate safeguards for Indian investors abroad. Private investments in India have shown steady growth, supported by a rise in public capital expenditure—from ₹2 trillion in 2014-15 to ₹12 trillion in the current fiscal year. Over the past three years, India has maintained an average economic growth of around 7% despite global volatility.

The revised Model BIT will be presented to the Cabinet for approval soon, marking a step toward modernizing India’s investment treaty framework.