It is good news that India has not completely abandoned its BIT
regime, but not more than one country adopting the 2016 model BIT
is sufficient indication of infirmities in the model
Foreign Direct Investment (FDI) in India has seen eleven-fold
growth in the past two decades — from $4 billion to
$44.8billion. With abundant drivers of human capital,
infrastructure, natural resources, technology and law, we are
undoubtedly the fastest-growing economy in the world. FDI plays a
key role in accelerating this growth.
However, FDI is a two-way street. Investor protection is
critical for ensuring FDI inflows. A stable political and legal
environment, assurances against taking away of the investment value
through legislative or administrative acts, transparent public
policy measures, and speedy access to justice are strong guarantees
for foreign investors.
