India is revising its Bilateral Investment Treaty (BIT) framework to emphasize domestic legal recourse, proposing a minimum two-year period for local remedies before seeking international arbitration. This shift aims to protect the country’s sovereignty and regulatory powers while balancing investor protection. The new model will exclude most-favoured nation (MFN) provisions and keep taxation issues outside the scope of investment agreements. A senior government official stated that local remedies must be prioritized, and discussions are ongoing about potentially shorter timelines for specific partners. The current BIT model, established in 2016, already requires foreign investors to exhaust domestic options before proceeding to international arbitration, following scrutiny from high-profile disputes involving companies like Vodafone and Cairn Energy. Finance Minister Nirmala Sitharaman has emphasized the need for separate negotiations for BITs and free trade agreements, ensuring adequate time for local dispute resolution. India has also been active in renegotiating investment agreements and has signed new treaties with nations including the UAE and Uzbekistan, reflecting its commitment to attracting long-term foreign investment while maintaining regulatory autonomy.