Q6 · UPSC current affairs · 9 September 2026 · News · India Model Bilateral Investment Treaty UK Talks

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Why is India currently finalizing an updated Model Bilateral Investment Treaty (BIT) draft?

A To restart stalled trade and investment talks with the United Kingdom while balancing investor protections with state regulatory sovereignty.
B To completely abolish international dispute resolution frameworks in favor of bilateral military pacts.
C To transfer all foreign direct investment approvals directly to the Reserve Bank of India.
D To comply with newly introduced World Bank mandates on taxation uniformity.

Correct answer: (a) To restart stalled trade and investment talks with the United Kingdom while balancing investor protections with state regulatory sovereignty.

Explanation

India is finalizing an updated Model BIT to restart stalled talks with the UK, balancing investor protections and state regulatory sovereignty after past disputes. The other options misstate the purpose of the treaty revision.

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