India is moving toward a new phase in its foreign-investment policy, with negotiations for bilateral investment treaties (BITs) with the United Kingdom, European Union, Oman and Qatar reportedly nearing conclusion.
A senior Finance Ministry official said India is close to concluding four BITs based on an updated investment-treaty framework. The revised Model BIT is currently awaiting consideration by the Union Cabinet. India has also recently initiated BIT negotiations with Canada.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: India is moving toward four new bilateral investment treaties.
Countries/Partners: United Kingdom, European Union, Oman and Qatar.
Authority/Organisation: Ministry of Finance / Government of India.
Action Taken: Revised Model BIT framework has been prepared and is awaiting Cabinet consideration.
Impact: A new treaty framework could shape future foreign-investment protection and dispute-settlement arrangements.
The development comes as the government reviews the framework governing how foreign investors are protected in India and how investment-related disputes are handled.
India's existing Model BIT framework dates from 2015. Following its introduction, India cancelled more than 50 older bilateral investment treaties in 2016 and sought to renegotiate investment agreements under the newer framework.
The revised framework is intended to provide a more updated basis for future negotiations while balancing investor protection with the government's ability to maintain domestic policy space.
Editorial Analysis
Why This Matters
Investment treaties can influence how foreign companies assess the legal environment for investing in another country. For India, the revised framework comes at a time when the government is seeking sustained foreign investment while also retaining policy flexibility. The proposed changes are therefore relevant not only to foreign investors but also to Indian companies investing overseas, because BITs can establish reciprocal protections between participating countries. The government has been reviewing the framework since the Union Budget for FY2025-26 announced an effort to make the investment-treaty framework more investor-friendly.
