2 - The Impact of Investment Treaties on the Rule of Law in India

Summary

This chapter looks at the internalisation of investment treaties over time in India. Despite having a massive investment treaty programme, investment treaties have only recently come to occupy an important place in discussions of national governance in India. This chapter examines whether this increased attention to investment treaties has led to increased internalisation. This chapter finds a disconnect between an increase in the political salience of investment treaties and a general lack of internalisation in government decision making. While awareness about investment treaties and investment treaty arbitration in India has increased following its loss of a number of cases brought by foreign investors, India has still not been able to internalise the impact and ramifications of investment treaties. That said, there is evidence of some, limited spill-over effect within government, as a number of specialised government bodies, such as the Law Commission of India and several other expert committees, have identified the importance and need to internalise investment treaties in their various reports.