The Development And Current Structure Of Indian Investment Law: Balancing The Needs Of The Nation And Investor Protection
- IJLLR Journal
- Nov 1
- 1 min read
Veer Narayan, B.B.A. LL.B. (Honours), Symbiosis Law School, Pune, Symbiosis International (Deemed University)
ABSTRACT
The Indian investment framework governs both domestic and foreign deals, which get approved, monitored, and protected. The system has undergone significant changes. Starting from strict rules after independence, the country then shifted toward more liberal policies in the 1990s. The current structure strikes a balance between attracting foreign investment and adhering to national policy regulations. This Paper examines how bilateral Investment treaties (BITs) between countries function alongside investor-state dispute systems (ISDS). It identifies issues focusing on dispute resolution practices, retrospective taxation and political & economic instability.
Key cases, such as White Industries' fight against India or Vodafone's tax battle, identify major problems. These cases reveal the central problem in India's legal framework. The need to provide a secure and stable environment for investors, while also allowing the government to adjust rules and regulations as required, based on policy documents, court rulings, and other relevant factors. It's not just about framing laws merely on paper; it's about highlighting the challenges in a legal system while balancing the complex needs of the financial and investor sectors in the real world.
Keywords: Indian Investment Law, Foreign Investment, Bilateral Investment Treaties (BITs), Investor-State Dispute Settlement (ISDS), Investor Protection, Sovereign Space, Retrospective Taxation
