Govt gives nod to revised Bilateral Investment Treaty
The government on Wednesday approved the revised model of the Indian Bilateral Investment Treaty (BIT) – a model that would provide appropriate protection to foreign investors in India and Indian investors in the foreign countries. “The revised model BIT will be used for re-negotiation of existing BITs and negotiation of future BITs and investment chapters in Comprehensive Economic Cooperation Agreements (CECAs)/Comprehensive Economic Partnership Agreements (CEPAs)/Free Trade Agreements (FTAs),” Ministry of Finance said in a statement on Wednesday. The new model will encourage foreign investors and provide them a balance between investors’ right and the government’s obligations and ensure non-discrimination in all policy matters. It will also establish an independent forum for dispute settlement by arbitration. “BITs help project India as a preferred Foreign Direct Investment (FDI) destination as well as protect outbound Indian FDI,” the ministry said. India had first signed the BIT in 1994. Since then, it has, so far, signed BITs with 83 countries based on the Indian Model BIT of 1993. Earlier, Prime Minister Narendra Modi chaired a cabinet meeting and gave his nod to replace the existing Indian Model BIT with the revised BIT.
November 17, 2015 | 1:07pm IST.
to success.