New Delhi – The Indian government is fast‑tracking its drive to enlarge the roster of bilateral investment treaties (BITs). Finance Minister Nirmala Sitharaman said the objective is to lock in agreements with at least three new partners before the close of 2026.
Revised template to steer future accords
India’s inaugural BIT model, adopted in 2016, has been under review as officials seek a sweet spot between strong investor safeguards and the nation’s policy independence. A revamped treaty framework has been under development for roughly a year and a half and is slated for Cabinet endorsement in the coming weeks.
The new template is intended to act as a common baseline for forthcoming negotiations while still permitting each pact to address the unique concerns of the counterpart country. Recent accords with Saudi Arabia, the United Arab Emirates and Oman already embed provisions that the government believes better reflect today’s investment landscape.
Canada and Russia among the talks in progress
Negotiations with Canada are advancing, and Sitharaman hinted that a Canada‑India BIT could be signed by December or, at the latest, early next year. Parallel discussions are also under way with Russia, a long‑standing economic partner active in energy, transport and defence. An investment‑protection pact would deepen that relationship by introducing a formal dispute‑resolution mechanism.
Why the renewed focus on BITs?
Bilateral investment treaties give foreign investors greater certainty that their capital will be protected and that any disputes will be settled through agreed‑upon channels. By modernising the template and adding new partners, India hopes to showcase a more predictable investment climate and attract additional foreign capital.
In recent years the country has already brought into force BITs with a handful of states, including Israel, Uzbekistan and the UAE, as listed by the Department of Economic Affairs. With multiple negotiations running side by side, officials are confident that at least three more treaties will be sealed by December, while the Canada talks could extend into early 2027 if needed.
