Why India's model bilateral investment treaty needs a thorough relook

It is good news that India has not completely abandoned its BIT regime, but not more than one country adopting the 2016 model BIT is sufficient indication of infirmities in the model

Foreign Direct Investment (FDI) in India has seen eleven-fold growth in the past two decades — from $4 billion to $44.8billion. With abundant drivers of human capital, infrastructure, natural resources, technology and law, we are undoubtedly the fastest-growing economy in the world. FDI plays a key role in accelerating this growth.

However, FDI is a two-way street. Investor protection is critical for ensuring FDI inflows. A stable political and legal environment, assurances against taking away of the investment value through legislative or administrative acts, transparent public policy measures, and speedy access to justice are strong guarantees for foreign investors.

A bilateral investment