A BIT of a reset, with a wider debate
India is revising its 2015 Model Bilateral Investment Treaty (BIT) to address concerns from foreign investors and balance state regulatory rights with investment protection. The move aims to restore investor confidence following a period of legal disputes and limited treaty adoption.
Why it matters
Reflects India's attempt to improve its business climate and attract foreign capital by reforming its international legal framework.
It has been widely reported that India is revising its model bilateral investment treaty (BIT) and that the revised text will soon be placed before the Union cabinet. The seeds of this were sown when Finance Minister Nirmala Sitharaman said in the Union Budget speech in 2025, that India was considering revamping its 2015 Model BIT. The treaty was adopted as part of a broader appraisal process launched after several foreign investors sued India for BIT breaches. The two key outcomes of this appraisal were the unilateral termination of BITs and the adoption of a new model BIT as the basis to launch new negotiations.
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