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The Cabinet approved the revised model text for the Indian Bilateral Investment Treaty (BIT), which will replace the existing Indian Model BIT, a move which is expected to provide protection to both Indian and foreign investors.
Bilateral investment Treaties (BITs) are agreements between two Countries for the reciprocal promotion and protection of investments in each other's territories by individuals and companies situated in either State. The following are the essential clauses covered under BITs
1. Applicability
2. Fair and Equitable Treatment and Full Protection & Security
3. National treatment and Most –favored -nation treatment,
4. Expropriation,
5. Dispute settlement mechanisms, both between States and between an investor and a State. BITs encourage foreign investors to invest in a State and there by contributing towards overall developments and advancements of the economy
What is in Revised Bilateral Treaty?
Analyze:
Dialing…………mains( Geneal Study paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.)
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