Model text for Indian Bilateral Investment Treaty gets nod

NEW DELHI: The Cabinet on Wednesday approved the revised model text for the Indian Bilateral Investment Treaty (BIT), which will replace the existing Indian Model BIT, a move which is expected to provide protection to both Indian and foreign investors. A BIT increases the comfort level and boosts the confidence of investors by assuring a level playing field and non-discrimination in all matters, while providing an independent forum for dispute settlement through arbitration.
BITs help project India as a preferred FDI destination as well as protect outbound Indian FDI. The measure comes at a time when there has been criticism about the pace of reforms in the country and certainty of policies. The revised model of BIT will be used for re-negotiation of existing BITs and negotiations of future BITs and investment chapters in Comprehensive Economic Cooperation Agreements, Comprehensive Economic Partnership Agreements and FTAs, according to a government statement.