The Impact of Bilateral Investment Treaties on FDI Inflows into India: Some Empirical Results

June 8, 2020

Commencing in the 1990s, India signed a number of bilateral investment treaties (BITs), however, after a spate of adverse investor-state dispute settlements (ISDS), India has recently denounced all its erstwhile investment treaties. New investment treaties now need to be negotiated on the basis of a new Model Treaty that substantially privileges state rights over investor rights. We study the impact of bilateral investment treaties on foreign direct investment inflows into India over the period these treaties were in force, to give us a sense whether the advent of the new regime will perhaps subtract some incentives in relation to FDI inflows.