After White Industries and the numerous claims like Vodafone, Cairn Energy, Nokia, Nissan, etc, India has started reviewing its bilateral investment treaties (BITs). It has formulated a Model BIT in 2016 and has unilaterally terminated numerous BITs with countries. This Article analyses whether a review of existing BITs by India was the correct decision. Further, it examines the implications of termination of BITs and whether the Model BIT addresses India’s critiques of BITs. The BITs signed in the 1990s have been criticized to be based on the laissez faire liberalism model, and fail to balance the investor’s right with the state’s right to act in public interest. However, the Model BIT does not seem to resolve and clear the vagueness of the key BIT provisions. None of the disputes against India show a genuine and direct conflict between investment protection and the host State’s right to regulate and act in public interest. All these cases could have been avoided if the Indian State was more circumspect either in adopting its regulations or in conduct of its business. The Article concludes by stating that India will have to consider all of these factors while developing its new BIT practice.
Global Trade and Customs Journal