Q5 · UPPSC current affairs · 9 September 2026 · News · India Model Bilateral Investment Treaty UK Talks

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Consider the following statements regarding India's Model Bilateral Investment Treaty (BIT):1.India's 2016 Model BIT prioritizes the exhaustion of domestic judicial remedies prior to resorting to international arbitration.2.The Investor-State Dispute Settlement (ISDS) mechanism allows domestic citizens to challenge state environmental policies in local courts.Which of the statements given above is/are correct?

A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (a) 1 only

Explanation

Statement 1 is correct because the 2016 Model BIT mandates exhausting local remedies before international arbitration. Statement 2 is incorrect because the ISDS mechanism allows foreign investors (not domestic citizens) to bring arbitration claims against a host government.

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