India Considers Qualified MFN Clause in Bilateral Investment Treaty Reforms
Union Government is considering restructuring India’s BIT framework, introducing a Qualified MFN clause (non-discrimination with limits) instead of the open-ended MFN dropped in the 2015 Model BIT, which also avoided a full FET standard. Proposals: cut domestic remedies/ISDS window from 5 years to 1, extend post-expiry protection from 5 to 10 years, expand “investment” to include portfolio/financial assets, and ban third-party funding. India is negotiating about a dozen BITs; net FDI averaged ~US$40 bn (FY20–FY22) and ~US$7.65 bn in FY26 (preliminary).


