Synopsis
India plans to revamp its bilateral investment treaty framework to enhance foreign investments and protect national interests, according to CEA Nageswaran. The update aims to adapt to modern challenges and bolster investor confidence in the evolving global landscape.Key Takeaways
- India is revising its BIT framework to align with global investment trends.
- The update aims to enhance protections for investors.
- Emphasis on balancing sovereign rights with regulatory flexibility.
- The framework targets medium-sized enterprises.
- Foreign investments are critical for India’s economic growth.
New Delhi, March 4 (NationPress) India is poised to overhaul its model bilateral investment treaty (BIT) framework to both attract and safeguard foreign investments, as stated by Chief Economic Adviser (CEA) V. Anantha Nageswaran on Tuesday. During a post-Budget webinar titled 'Making India Investment Friendly', Nageswaran pointed out that the current BIT framework, which has remained unchanged for nearly a decade, is now being revised to tackle contemporary challenges.
He emphasized that this revision is crucial due to the substantial shifts in the global investment landscape and international regulations since India last examined its BIT model.
"The new model BIT will therefore be more aligned with the requirements of a dynamic global investment environment,” remarked Nageswaran.
He further noted that it will simultaneously uphold India's sovereign rights and the significance of regulatory flexibility, ensuring that public policy objectives are not hindered by international legal commitments.
The Chief Economic Adviser underlined that the revised BIT model will prioritize enhancing protections for investors, especially in emerging markets like India.
This initiative is a response to the increasing demand from investors for stronger measures to secure their investments.
The updated framework aims to position India as an appealing destination for foreign investment, particularly for medium-sized enterprises.
Union Finance Minister Nirmala Sitharaman also touched on this topic in her 2025-26 Budget address, asserting that the current BIT framework will be revamped to become more investor-friendly.
FM Sitharaman highlighted the necessity of maintaining a balance between India's sovereign rights and regulatory scope while promoting foreign investment.
Nageswaran pointed out that foreign investments, both portfolio and direct, are vital for India’s economic expansion, especially as the nation faces a current account deficit.
"The revamped BIT model aims to tackle investor concerns, boost legal protections, and bolster India's long-term economic growth trajectory by making the country an even more attractive investment destination," he concluded.
