The government has proposed to renegotiate all its bilateral investment pacts and to replace them with new treaties. Commerce and Industry Minister Nirmala Sitharaman has said that India has proposed to renegotiate all its bilateral investment agreements whose earlier validity had expired and will replace them with the new Bilateral Investment Treaties (BITs).
The minister added that out of the total 83 treaties signed by India so far, 58 are being terminated. The notices have been sent to the respective governments through the diplomatic channel. She further said that USA has expressed its desire to sign a treaty similar to the FTA signed with Japan and Korea and the technical discussions with the US side have been continuing on the basis of the revised treaty text.
In December last year, the government had approved the revised Model Text for the Indian Bilateral Investment Treaty , which provides appropriate protection to foreign investors in India and Indian investors in the foreign country, in the light of relevant international precedents and practices, while maintaining a balance between the investor's rights and the Government obligations. It was then decided that the model BIT will be used for re-negotiation of existing BIT and negotiation of future BITs.