New Delhi, March 4: India is set to revamp its model bilateral investment treaty (BIT) framework to attract as well as protect foreign investments, aligning with the evolving global investment landscape while guarding national interest, Chief Economic Adviser (CEA) V. Anantha Nageswaran said on Tuesday.
Addressing a post-Budget webinar titled ‘Making India Investment Friendly’, Nageswaran highlighted that the current BIT framework, which has not been updated in nearly a decade, is being revised to address modern challenges.
He stressed that this update is essential due to significant changes in the global investment ecosystem and international laws since India last reviewed its BIT model. “The new model BIT, therefore, will be more attuned to the demands of a dynamic global investment environment,” Nageswaran said.
He further stated that at the same time, it will reflect India’s sovereign rights and the importance of regulatory space so that public policy priorities are not constrained by international legal obligations.
The Chief Economic Adviser stressed that the new BIT model will focus on improving protections for investors, particularly in emerging economies like India. This is in response to the growing demand from investors for stronger safeguards to secure their investments.
The revised framework will ensure that India remains an attractive destination for foreign investment, particularly for medium-sized enterprises. Union Finance Minister Nirmala Sitharaman also addressed the issue in her 2025-26 Budget speech, stating that the existing BIT model will be revamped to make it more investor-friendly.
FM Sitharaman emphasised the importance of balancing India’s sovereign rights and regulatory space while encouraging foreign investment. Nageswaran emphasised that foreign investments, both portfolio and direct, are crucial for India’s economic growth, especially as the country faces a current account deficit.
“The revamped BIT model aims to address investor concerns, enhance legal safeguards, and support India’s long-term economic growth strategy by making the country an even more attractive investment hub,” he said.
IANS