India eases certain conditions for UAE in bilateral investment treaty: GTRI
India has eased certain conditions for UAE in the bilateral investment treaty by including portfolio investments and reduction in the local remedies exhaustion period from five years to three years in the pact, economic think tank GTRI said on Monday.
The India-UAE Bilateral Investment Treaty (BIT) came into force on August 31 this year.
The model BIT requires investors to attempt to resolve disputes through India's legal system for at least five years before seeking international arbitration.
In contrast, the India-UAE BIT reduces this period to three years, giving investors quicker access to Investor-State Dispute Settlement (ISDS).
"While this makes the treaty more investor-friendly, it also weakens India's ability to settle disputes domestically, increasing the likelihood of arbitration cases that could challenge India's regulatory decisions," the Global Trade Research Initiative (GTRI) said in a statement.
It added that local remedies exhaustion means that investors must firs