Navigating Investment Disputes: India's Response To Sustainable Development Challenges

Introduction

Although foreign investors did not win all instances addressing sustainable development issues,¹ the mere prospect of challenging sustainability measures is considered to deter host countries from implementing environmental or social measures required to meet their SDGs.

Impact of Investment Treaties on Host Countries

While there was widespread criticism of IIAs and the ISDS system in the early 2000s, India's excitement for IIAs only waned when the country lost its first ISDS lawsuit in 2011.² The White Industries case was ultimately responsible for a significant shift in India's IIA policy.³ The dispute between an Australian investor and an Indian state coal business occurred as a result of a significant delay in the implementation of an arbitral ruling in India, and it is an excellent illustration of the unexpected consequences of an IIA. The tribunal determined that India's tardy execution of an arbitral ruling violated the right to an