India revamps bilateral investment treaty framework to attract foreign investments

India is set to revamp its Bilateral Investment Treaty (BIT) framework to better align with the evolving global investment landscape while safeguarding its sovereign rights. Chief Economic Adviser V. Anantha Nageswaran emphasized the need for this update, stating that the current model, last revised nearly a decade ago, fails to meet modern challenges faced by investors. The new BIT will enhance protections for foreign investments, especially for medium enterprises, as India seeks to attract more foreign capital in light of its current account deficit. Finance Minister Nirmala Sitharaman also highlighted the importance of making the BIT more investor-friendly during her 2025-26 Budget speech, advocating for a balance between investor protection and regulatory space. The update comes as India negotiates new BITs and responds to criticisms regarding the previous framework's stringent rules and limited protections. This initiative aims to position India as a more attractive destination for global investments, reflecting significant shifts in international investment law and practice.