New Delhi – The Indian administration is fast‑tracking efforts to expand its roster of bilateral investment treaties (BITs). Finance Minister Nirmala Sitharaman announced that the aim is to clinch at least three new accords before the close of 2026.
Introducing a unified template for upcoming deals
India’s inaugural BIT model, adopted in 2016, has been under a comprehensive review as policymakers strive to balance strong investor safeguards with the nation’s regulatory flexibility. After roughly 18 months of work, a refreshed treaty framework is ready for cabinet endorsement in the coming weeks.
The new template will act as a common foundation for future negotiations, yet it retains the flexibility to incorporate country‑specific provisions. Recent accords with Saudi Arabia, the United Arab Emirates and Oman already feature clauses that reflect today’s investment climate.
Canada and Russia feature prominently in ongoing talks
Negotiations with Canada are progressing, and Sitharaman hinted that a Canada‑India BIT could be signed by December, or at the latest, early next year. Simultaneously, discussions with Russia—a long‑standing partner in energy, transport and defence—are underway, with an investment‑protection pact expected to add a formal dispute‑resolution mechanism to the relationship.
Why the renewed emphasis on BITs?
Bilateral investment treaties give foreign investors confidence that their capital will be shielded and that any disputes will be resolved through agreed‑upon channels. By modernising the template and adding new partners, India seeks to signal a more predictable investment environment and attract additional foreign capital.
In recent years, India has already ratified BITs with a handful of countries, including Israel, Uzbekistan and the UAE, as documented by the Department of Economic Affairs. With several negotiations proceeding in parallel, 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.
