Model Text for the Indian Bilateral Investment Treaty: An Analysis
Volume 8 Issue 1-2 (2015)
The 2016 version of the Model Bilateral Investment Treaty unveiled by India reflects a major step towards clearing India’s not-so-attractive reputation in the world of international investment. The Model text however, though a revised version of the draft text released in 2015, still does not elevate India to the standard of an investment friendly country. Various provisions of the Model Bilateral Investment Treaty are a knee-jerk reaction to the investment claims faced by India in the past, and they seek to safeguard the regulatory powers of the State more than the catering to the objective of investment promotion and protection. The Model Bilateral Investment Treaty also deviates from various traditional norms of Bilateral Investment Treaties, which could back re in the long-run as the scope of application and interpretation of these new standards could remain with the arbitral tribunals which may choose a liberal interpretation over a narrow one. Therefore, India should embrace the current trends in investment protection from around the world even more to remain in competition for attracting foreign investments.