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Bilateral investment treaties: a developing history

• Published: 20 October 2016
• Volume 7 , pages 175–199, ( 2016 )

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• Kanu Agrawal 1  

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When an investor decides where to invest internationally, and where to set up the structure for the foreign investment, the investor’s attention is usually focused on a comparison of the tax rules, the return on investment, the local justice system and lastly the investment protection regime under international law. While attracting foreign investors, the host countries assess the investment’s sustainability, the repatriation rules, the expertise and the technology it brings and lastly the sectors in which the investment shall operate. To understand the complexities of this bargain, one needs to understand the ancestries of foreign investments and take into account the variables, along with the changing dynamics of the world economic order. This understanding of the history of foreign investment shall enable us to ascertain the reasons behind the allegedly lopsided nature of international investment laws and equip us to tackle the imminent problems effectively. It is in this backdrop that this article studies the Indian Bilateral Investment Treaties (BITs) regime. It was often argued that India had signed a large number of “old-style” treaties that may leave it vulnerable to challenges. India’s new model BIT represents the logical culmination of balancing of national and developmental interests especially in light of the history behind foreign investments. The new model BIT released by India’s Ministry of Finance unsurprisingly makes significant departures from the principles enshrined in earlier BITs, in order to tilt the balance back in favour of securing India’s sovereign rights, whilst promoting the developmental agenda. This article provides insights on the issues which may arise with the new Model BIT in the near future.

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Agrawal, K. Bilateral investment treaties: a developing history. Jindal Global Law Review 7 , 175–199 (2016). https://doi.org/10.1007/s41020-016-0031-x

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Published : 20 October 2016

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DOI : https://doi.org/10.1007/s41020-016-0031-x

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