This is mainly because India’s model BIT text “substantially narrows the scope of investments” that can be covered by the proposed India-U.S. However, the negotiations were initially delayed as India and the U.S. had undertaken a review of their respective model BIT texts. The new model text on the basis of which India is negotiating its Bilateral Investment Treaties (BIT) is making it difficult for America to hold bilateral talks on the proposed India-U.S. And I’m afraid things have become a bit more difficult (due to India’s new model BIT text),” Mr.Verma told a gathering at the ‘Atlantic Council U.S.-India Trade Initiative Workshop,’ on Monday. Foreign investors — seeking such international arbitration — usually claim huge compensation for “losses” they “suffered” owing to reasons including government policy changes.

Source: The Hindu June 27, 2016 14:48 UTC