India Targets Three Additional Investment Protection Treaties Before Year‑End

New Delhi – The Indian administration is stepping up efforts to expand its portfolio of bilateral investment treaties (BITs). Finance Minister Nirmala Sitharaman indicated that the aim is to finalize agreements with at least three new partners before the close of 2026.

A fresh template to guide forthcoming accords

India’s inaugural BIT model, adopted in 2016, has been under a thorough review as policymakers strive to strike a balance between solid investor safeguards and the nation’s policy flexibility. Over the past eighteen months a modernised treaty framework has been drafted and is slated for cabinet endorsement in the coming weeks.

The new template is intended to act as a common foundation for future talks while still permitting each agreement to reflect the particular priorities of the counterpart state. Recent pacts with Saudi Arabia, the United Arab Emirates and Oman already feature provisions that the government believes better suit today’s investment landscape.

Canada and Russia feature in active negotiations

Discussions with Canada are progressing, and Sitharaman suggested that a Canada‑India BIT could be signed by December, or at the latest in early 2027. Simultaneously, talks are underway with Russia, a long‑standing economic ally involved in energy, transport and defence sectors. An investment‑protection agreement would cement that relationship by introducing a formal dispute‑resolution mechanism.

Why India is revitalising its BIT agenda

Bilateral investment treaties give overseas investors confidence that their capital will be shielded and that any disagreements will be settled through pre‑agreed channels. By updating the template and courting new partners, India hopes to showcase a more predictable investment climate and attract further foreign capital.

In recent years the country has already activated BITs with a handful of nations, including Israel, Uzbekistan and the UAE, as reported by the Department of Economic Affairs. With several negotiations proceeding in parallel, officials are optimistic that at least three additional treaties will be sealed by December, while the Canada talks could extend into early 2027 if required.