Revamp of Model Bilateral Investment Treaty in works, to be presented to Cabinet soon: Secy
The Indian Finance Ministry is revising its Model Bilateral Investment Treaty to better protect Indian companies investing abroad while addressing investor-state dispute challenges. The updated framework is expected to be presented to the Cabinet for approval soon.
Why it matters
This shift reflects India's evolving economic strategy as it balances attracting foreign investment with protecting its own sovereign interests in international arbitration.
The Finance Ministry is reviewing its Model Bilateral Investment Treaty to make it investor-friendly and will approach the Cabinet for approval soon, Economic Affairs Secretary Anuradha Thakur said on Friday (August 7, 2026).
"The BIT is under review, and we are looking at...many other clauses based on our experience in the negotiations and based on global practices...it is a work in progress. Consultations are underway, and we are reviewing the Model BIT (Bilateral Investment Treaty)," she said at an event organised by economic think tank NCAER.
A bilateral investment treaty is an agreement between two countries to promote and protect investments made by their investors in the other's territory. It provides foreign investors certain guarantees, and when disputes arise, the agreement typically allows investors to take the host country to international arbitration.
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