New Delhi – The Indian administration is fast‑tracking its agenda to expand the roster of bilateral investment treaties (BITs). Finance Minister Nirmala Sitharaman indicated that the aim is to conclude agreements with at least three new counterparts before the close of 2026.
Introducing a unified template for upcoming accords
India’s inaugural BIT model, adopted in 2016, is currently under review as policymakers strive to strike a balance between strong investor safeguards and the nation’s regulatory freedom. A revamped treaty framework has been under development for roughly a year and a half and is slated for Cabinet approval in the near future.
The new template is intended to act as a common foundation for forthcoming negotiations while still permitting each agreement to reflect the unique priorities of the partner country. Recent accords with Saudi Arabia, the United Arab Emirates and Oman already embed provisions that the government views as better suited to today’s investment climate.
Canada, Russia and other nations in active discussions
Negotiations with Canada are progressing, and Sitharaman suggested that a Canada‑India BIT could be inked by December or, at the latest, early next year. Simultaneously, talks are ongoing with Russia, a long‑standing economic ally engaged in energy, transport and defence sectors. An investment‑protection treaty would deepen that relationship by introducing a formal dispute‑resolution mechanism.
Why the renewed emphasis on BITs?
Bilateral investment treaties give foreign investors clearer assurance that their capital will be shielded and that any disputes will be resolved through pre‑agreed channels. By modernising the template and courting new partners, India hopes to signal a more predictable investment climate and attract additional overseas capital.
In recent years, India has already ratified BITs with several countries, including Israel, Uzbekistan and the UAE, as recorded by the Department of Economic Affairs. With multiple negotiations proceeding in parallel, officials are confident that at least three more treaties will be sealed by December, while the Canada talks could extend into early 2027 if necessary.
