New Model Bilateral Investment Treaty to be attained to Demands of Global Investment Environment: Cea

Chief Economic Adviser V. Anantha Nageswaran | Photo credit: the Hindu

Chief Economic Adviser v Anantha Nageswaran on Tuesday (March 4, 2025) Said the new model text for bilateral investment treatment (Bit) will be bests of a dynamic global investment While Safeguarding India’s Sovereign Rights and Regulatory space.

Addressing a post budget webinar 2025 on the theme of ‘Making India Investment Friendly’, He Said The Bit Framework is Being Revised to Reflect modern challenges.

Almost 10 years have passed since the last review of India’s model bit and since, the global investment ecosystem and interactive jurisprudence has evolved significly, he said.

Nageswaran Said Investors Now seek Stronger Protection for their Investments, Especially in Emerging Economies, and this has Necessible an update of the model bit to align it with interstelling That the country remains an attractive investment destination, especially for medium enterprises.

“The new model bit therefore will be more attached to the demands of a dynamic global investment environment. Public policy priorities are not constrained by International Legal Obligations, “Nageswaran said.

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Finance minister nirmala sitharaman in her 2025-26 budget speech said that to encourage sustained foreign investment and in the spirit of ‘First Develop India’, The Current MODEL BIT BIT BET BET BET BETE Investor-friendly.

The announsement assumes significance as only a less counts have accepted the existing model tax treatment, and most of the developed nations have expressed their reservations on the tax with reviews to providers Like resolution of disputes.

Nageswaran also said that Foreign Investments Plays a Crucial Role In the Economic Growth and Development, and “We are a Current Account Deficit (CAD) Country, So We Need BOTFOLIOO and DIRECT Investments “.

The Bilateral Investment Treaties Provide a Legal Framework to Protect Foreign Investments, Especially for Small and Medium Enterprises, While Offering SafeGuards like Protect Experiation and FIRI Treatment.

Last month, sitharaman had said that going forward the bilateral investment treates

She said the issues related to bit are unique to the sovereign and hence bit should be negotiated on a standalone basis raather than as a part of an fata agrement.

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India Signed Its first bit with the united kingdom in 1994 and most recently, two more bilateral investment treates in 2024 with uae and uzbekistan.

“Initially, the bits was focused on investor protection. Over time, many countries, including India, have realized the importance of balance investor protection with state sovereign. Safeguard National Interest While Encountering Foreign Investment, “He Said Adding” It is a Balancing Act “.

Presently, India is negotiating a bit with the uk, saudi arabia, Qatar, and the European Union (EU).

FDI Inflows Into India Have Crossed The UsD 1 Trillion Milestone in the April 2000-September 2024 Period, Firmly Establishing The Country’s Reputation as a Safe and Key Investment Destination Globally.

Foreign Investments are Increasing in the Country. The inflows are increasing in sector such as services sector, computer, software and hardware, trading, telecommunications, automobiles and they have contributed signifactly to competivity to competivity Advancement in the country.