Would like to have a bilateral investment treaty with India: Swiss Minister

New Delhi, Oct 1 (PTI) Swiss State Secretary for Economic Affairs Helene Budliger Artieda on Wednesday pitched for a bilateral investment treaty with India, following the USD 100 billion investment commitment by EFTA nations under a new trade pact.

The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.

The free trade agreement between India and the four-nation European bloc EFTA came into force on Wednesday, under which the country has received an investment commitment of USD 100 billion over 15 years, while lowering or removing duties on products like Swiss watches and chocolates.

It was signed on March 10, 2024.

"So, you heard Liechtenstein would like to have a double taxation agreement in place. If I may also wish...with this massive principle of investment, we would like to have a bilateral investment treaty in place.

"Last time, I was here, I had a wonderful conversation with your Minister of Finance, and I'm hearing that there is a model text in preparation," the Swiss minister said at the India EFTA business summit.

Commerce and Industry Minister Piyush Goyal was also present at the summit.

"You know, in order to get this very innovative idea of an investment pledge going, it's actually not our money, it's the money of our private sector, so we needed to convince them, but I can report here that they're all fired up," she added.

India is actively negotiating bilateral investment treaties (BITs) with over a dozen countries, including Saudi Arabia, Qatar, Oman, Switzerland, Russia, Australia and the European Union.

These investment treaties help in protecting and promoting investments in each other's countries.

With India set to become the third-largest economy and a hub for global manufacturing, the government is taking a series of measures to further improve its investment regime that encourages investors.

The government in the last Budget has announced revamping the current model of BITs to make it more investor-friendly and attract foreign players.

The country signed BITs with two countries in 2024.

Last year, the Centre announced the implementation of these treaties with the UAE and Uzbekistan.

Unlike a chapter related to investment promotion or facilitation in free trade agreements recently concluded, the investment protection element under a BIT provides a wide range of obligations and commitments bestowed upon foreign investors, which are expansive in nature.

In a BIT, the provision of mandatory exhaustion of local legal remedies for a period of five years before resorting to international arbitration is beneficial for both the investor and the state involved in a dispute.

India's approach of requiring local remedies aligns with its stance to protect taxpayer money and avoid prolonged and costly legal battles, while simultaneously providing arbitration as an alternate dispute resolution mechanism to investors.

FDI inflows into India crossed the USD 1 trillion milestone in the April 2000-June 2025 period, firmly establishing the country's reputation as a safe and key investment destination globally.

Last fiscal year, it stood at USD 80.61 billion. PTI RR BAL BAL