Revamp of Model Bilateral Investment Treaty in works, to be presented to Cabinet soon: Secy

admin — Fri, 07 Aug 2026 17:02:00 +0000

Secy Dept of Economic Affairs, Ministry of Finance, Anuradha Thakur. File
| Photo Credit: R.V. Moorthy

The Finance Ministry is reviewing its Model Bilateral Investment Treaty to make it investor-friendly and will approach the Cabinet for approval soon, Economic Affairs Secretary Anuradha Thakur said on Friday (August 7, 2026).

“The BIT is under review, and we are looking at…many other clauses based on our experience in the negotiations and based on global practices…it is a work in progress. Consultations are underway, and we are reviewing the Model BIT (Bilateral Investment Treaty),” she said at an event organised by economic think tank NCAER.

A bilateral investment treaty is an agreement between two countries to promote and protect investments made by their investors in the other’s territory. It provides foreign investors certain guarantees, and when disputes arise, the agreement typically allows investors to take the host country to international arbitration.

“One of the key aspects we need to keep in mind is the investor disputes that the country is facing. Trade negotiations and investment negotiations differ importantly. Under investment protection treaties, investors can take a sovereign government to arbitration,” she said.

In contrast, she said trade treaties have a state-to-state dispute settlement mechanism, where diplomatic relations and negotiations allow for greater flexibility and give-and-take.

Keeping this in mind, she said, investor protection has become even more important, especially now that outward direct investment (ODI) from India is increasing.

“In every negotiation, we have to ensure that our own investors and companies also receive adequate protection.

“This is an entirely new dimension in our negotiations. As Indian companies expand overseas, they will need protection in the countries where they invest. Therefore, some of these clauses may actually be useful to retain,” she said.

Taking all these factors into account, she said, the Model BIT is currently under review, and it will soon be placed before the Cabinet for a decision.

The existing Model BIT was approved by the Union Cabinet headed by Prime Minister Narendra Modi in 2015.

Revamping the model BIT assumes significance as few countries have accepted the existing model tax treaty, and most of the developed nations have expressed reservations on the tax with regard to provisions like resolution of disputes.

These investment treaties help in protecting and promoting investments in each other’s countries.

Asked if overreach of investigative agencies is a reason for flight of capital, Thakur said gross foreign direct investment reached a record while net FDI declined slightly last year.

She dismissed fears that the decline in net FDI is due to overreach of law enforcement agencies, including the ED, saying most of such actions are procedure-driven and transparent.

Frivolous and excessive action are reined in, she added.

She also said that FDI comes into countries for many reasons, and broadly it comes from different destinations looking for returns, looking for stability.

Published – August 07, 2026 10:32 pm IST

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G-20 Summit | British Prime Minister Rishi Sunak signs new strategic pact with Singapore in India

admin — Sat, 09 Sep 2023 10:30:54 +0000

British Prime Minister Rishi Sunak with his Singapore counterpart during a bilateral meeting on the sidelines of G-20 summit in New Delhi on September 9, 2023.
| Photo Credit: Dan Kitwood

British Prime Minister Rishi Sunak has agreed a new strategic partnership with Singapore during a meeting with Prime Minister Lee Hsien Loong on the margins of the G20 Summit in New Delhi on September 9.

Following the new U.K.-Singapore Strategic Partnership, Downing Street said both countries will work to conclude a “new and modern” bilateral investment treaty – the first the UK has negotiated since Brexit.

The pact is expected to give Singaporean companies more confidence to invest in the UK and vice-versa, creating jobs and growth for both economies.

“This new agreement with Singapore will take us even further in delivering our priorities and ensure that, as we map the future of the world economy, we are doing so alongside our closest partners,” said Mr. Sunak in a statement from Delhi.

“As Prime Minister, I’ve put the interests of the British people front and centre of my international engagement. I am ensuring that diplomacy delivers. You have already seen that through deals that will stop illegal migration, make our economy more secure and increase trade with our international partners,” he said.

Downing Street pointed out that the U.K. has forged a number of new bilateral and multilateral partnerships since Mr. Sunak took charge as Prime Minister, with an FTA with India still some way to go after 12 rounds of negotiations.

“We are in the process of negotiating further free trade agreements (FTAs), including a deal with India which would be the first the country has signed with a European country,” it said.

In addition to enhanced economic cooperation, the new U.K.-Singapore Strategic Partnership is expected to strengthen security cooperation, science and technology innovation, and research and development.

This includes collaboration to counter new and emerging threats in domains like cyber, through a first-of-its-kind partnership between Singapore’s new Digital and Intelligence Service and the UK, Downing Street said.

According to official data, the U.K.-Singapore trade relationship is worth 21 billion pounds, accounting for 40 per cent of Britain’s total trade with Southeast Asia, and Singaporean entities have a total of 226 billion pounds invested in the UK.

Mr. Sunak arrived in New Delhi on Friday for the G20 Leaders’ Summit and started the three-day visit with an interaction with British Council students and staff with wife Akshata Murty ahead of the first set of official multilateral discussions taking place on Saturday.

“15 years ago, G-20 leaders came together for the first time to restore global growth after the financial crisis. We meet at a time of enormous challenges – the world is looking to the G-20 once again to provide leadership. Together I believe we can address these challenges,” he tweeted from the summit.

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Revamp of Model Bilateral Investment Treaty in works, to be presented to Cabinet soon: Secy

G-20 Summit | British Prime Minister Rishi Sunak signs new strategic pact with Singapore in India