The Centre is finalising a revised Model BIT for Cabinet approval, with a new focus on safeguarding Indian companies' rising outward FDI even as it protects foreign investors. This comes against a sharp fall in net FDI inflows to $7 billion in 2025-26, which has weakened the balance of payments and pressured the rupee.
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1-Minute Revision
- ›Model BIT Under Review: 2015 edition; Cabinet approval pending
- ›Net FDI 2020-21: ~$44 billion
- ›Target this Data: Net FDI fell from ~$44B (2020-21) to <$1B (2024-25), recovered to $7B (2025-26); Indian ODI rose from $11B to $34B.
- ›Target this Policy Point: 2015 Model BIT mandates five years of domestic legal remedies before international arbitration.
- ›Target this Nodal Body: Economic Affairs Secretary (Department of Economic Affairs) under the Ministry of Finance; final approval requires Cabinet.
- ›Target this Institution: National Council of Applied Economic Research (NCAER) India Policy Forum was the venue.
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