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India has begun an ambitious exercise to renegotiate all its bilateral investment pacts and replace them with the new Bilateral Investment Treaty (BIT).
“We have sent notices to all countries with whom India has Bilateral Investment Promotion and Protection Agreements (BIPA) for renegotiation for the new treaty,” said a senior government official.
India has signed 83 bilateral trade and promotion agreements with countries including the UK, China and United Arab Emirates (UAE).
The last treaty was signed with UAE in December 2013 but it was not enforced. In fact, only 72 treaties are in force as of now.
The Union Cabinet had in December last year cleared a new model of the Bilateral Investment Treaty that would give more stability to foreign investors and prevent disputes with multinational companies by excluding matters such as government procurement, taxation, subsidies, compulsory licenses and national security.
Sources said the Finance Ministry is awaiting a response from all its treaty countries to initiate negotiations for the new BITs.
“The renegotiation will be done on a case-by-case basis as and when a country responds. Till then, the current BIPA will be in effect,” said the official.
The government expects the process could take at least a few years to be completed.
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