Down To Earth: May 15, 2013
A treaty too many
India is learning that there is a heavy price to be paid for the large number of bilateral investment treaties, or BITs, it has signed in the hope of attracting foreign investment. In recent months, a slew of global investors upset with policy changes made by the government are seeking huge compensation from India in international arbitration. They are using provisions of the various BITs to seek not just monetary damages but also revocation of regulatory measures and key decisions such as on taxation.
Latha Jishnu outlines the threats such treaties pose by highlighting the most alarming investor complaints that have been filed worldwide against the state. If India does not review its investment policies and trade agreements and build in adequate safeguards, it could be in for worse shocks.
Read the dossier online at Down To Earth : http://www.downtoearth.org.in/content/treaty-too-many