New Delhi – The Indian administration is speeding up its effort to expand the roster of bilateral investment treaties (BITs). Finance Minister Nirmala Sitharaman announced that the aim is to finalize deals with at least three new partners before the close of 2026.
Introducing a new model for upcoming accords
India’s inaugural BIT template, adopted in 2016, has been under a comprehensive review as policymakers try to strike the right balance between solid investor safeguards and the nation’s regulatory freedom. A refreshed framework, under development for roughly a year and a half, is slated for cabinet endorsement in the next few weeks.
The modernised model will act as a common foundation for future talks, yet it retains the flexibility to incorporate country‑specific provisions. Recent pacts with Saudi Arabia, the United Arab Emirates and Oman already feature clauses that the government believes better reflect today’s investment climate.
Canada and Russia feature prominently in current negotiations
Discussions with Canada are progressing steadily, and Sitharaman hinted that a Canada‑India BIT could be signed by December or, at the latest, early next year. Parallel talks are also underway with Russia, a long‑standing economic collaborator in energy, transport and defence. An investment‑protection agreement would cement that relationship by adding a formal dispute‑resolution mechanism.
Why the renewed emphasis on BITs?
Bilateral investment treaties give overseas investors greater confidence that their capital will be shielded and that any disputes will be settled through agreed‑upon channels. By updating the template and courting new partners, India hopes to showcase a more predictable investment landscape 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 recorded by the Department of Economic Affairs. With several negotiations running concurrently, officials are optimistic that at least three more treaties will be sealed by December, while talks with Canada could extend into early 2027 if required.
