Bilateral Investment Treaties: Concept and History

By Neha Srivastava, Dr. Ram Manohar Lohiya National Law University*.

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Abstract

Bilateral Investment Treaties (BITs) are a policy tool for promoting and protecting foreign direct investment (FDI). FDI is simply defined as a type of investment by a resident of one country in an enterprise in another country, indicating a significant influence and long-term interest. In the age of globalisation, FDI is regarded as an essential component of a free and prosperous global economic system and a key development tool[1]. The proposed study will investigate these treaties and their impact on policy space, focusing on the BITs signed by India. It is argued that BITs limit sovereign governments' ability to take policy measures to promote and protect domestic development goals. Policy space is defined as an autonomous decision-making space that a host country government considers essential for promoting and protecting its citizens' basic needs[2].

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* The author is pursuing Ph.D. from Dr. Ram Manohar Lohiya National Law University. [1] India and Bilateral Investment Treaties, PRS Legislative research, available at: https://prsindia.org/policy/report-summaries/india-and-bilateral-investment-treaties#:~:text=BITs%20establish%20minimum%20guarantees%20between,protection%20from%20expropriation%20(limiting%20each (last visited on 01-03-2023) [2] Bilateral treaty, Britannica, available at: https://www.britannica.com/topic/bilateral-treaty (last visited on 01-03-2023)

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