India's Bilateral Investment Treaties: A Strategic Transformation

India is vigorously pursuing negotiations for bilateral investment treaties (BITs) with more than a dozen nations, including Saudi Arabia, Qatar, and the European Union, according to a government official. These treaties are essential for fostering and safeguarding investments, especially as India eyes becoming a top global economy and manufacturing hub.

The government's latest budget seeks to make BITs more appealing to foreign investors. In 2024, India signed new BITs and reduced the mandatory local legal remedy period from five to three years for disputes. This shift indicates India's attempt to balance investor needs with protecting national interests.

Experts like Rumki Majumdar of Deloitte India emphasize that India's BITs should serve not just as legal documents but as powerful economic tools. The country aims to customize these treaties for mutual economic benefit, moving beyond multilateral constraints to foster robust bilateral partnerships.

(With inputs from agencies.)