Bilateral investment treaties: From why to how
Net FDI in India stagnated from $45 billion in 2015-16 to $41 billion in 2025-26. Many factors are at work: the loss of residence-based taxation, the loss of bilateral investment treaties, the rise of central planning coupled with the decline in the rule of law, and economic nationalism where foreigners feel they are not treated equally.
The value of bilateral investment treaties is now more widely understood. Yesterday, Shubho Roy and I had a column in the Business Standard titled Bilateral investment treaties: From why to how. In this we propose a fund to pay the stream of claims, and that foreign investor confidence will return after the Indian state complies with a deep BIT, quietly paying out money as and when cases are lost, for decades.

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