Facts for Prelims (FFP)
Source: Business Standard
Context: The Prime Minister’s Office (PMO) has directed the commerce ministry to review the model text of bilateral investment treaties (BITs) and propose enhancements to facilitate business operations.
- This move is prompted by India’s previous losses in international arbitration cases against companies like Vodafone and Cairn Energy over retrospective tax imposition.
- Model text of BIT: Union Cabinet adopted new Model BIT text in 2015, which replaced Indian Model BIT, 1993.
BITs are crucial for protecting and promoting investments between nations, and they are a focal point in India’s negotiations with countries like the UK and the European Free Trade Association (EFTA).
