INVESTMENT ARBITRATION: A COMPARATIVE STUDY OF CHALLENGES AND PROSPECTS WITH SPECIAL REFERENCE TO INDIA

AUTHOR – MEET BHALLA* & ASST. PROF. SACHIN KUMAR**

* STUDENT AT LAW COLLEGE DEHRADUN, UTTARANCHAL UNIVERSITY, DEHRADUN, UTTARAKHAND, INDIA 

** LAW COLLEGE DEHRADUN, UTTARANCHAL UNIVERSITY, DEHRADUN, UTTARAKHAND, INDIA

BEST CITATION – MEET BHALLA & ASST. PROF. SACHIN KUMAR, INVESTMENT ARBITRATION: A COMPARATIVE STUDY OF CHALLENGES AND PROSPECTS WITH SPECIAL REFERENCE TO INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (10) OF 2025, PG. 218-224, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

As a main approach for solving disputes between foreign investors and host states, investment arbitration is now prominent under Bilateral Investment Treaties (BITS) and International Investment Agreements (IIAs). Although the system has benefits including impartial status, the enforcement of arbitral decisions and protection for foreign investors, it is now being looked at closely for not being clear, expensive for many, full of delays and inconsistent in certain rulings. Changes in how states and their regulators act have resulted in international changes.

The way India has developed in investment arbitration deserves notice, with many significant disputes and a significant change in approach shown by its Model BIT from 2016. This piece evaluates and compares investment dispute resolution rules in the EU, the US and Latin America, in comparison with ongoing developments in India. The study discusses the issues generated by ISDS, what India did to address them by terminating BITs and seeking new agreements and what this means for its investment climate.

As a result, the paper offers ideas for future actions and proposes steps to align investor support with the country’s needs such as creating strong bilateral treaties, building domestic capacity and increasing transparency. Keywords: Investment Arbitration, Investor- State Dispute Settlement, Bilateral