PROTECTION OF FOREIGN INVESTMENT IN INDIA: A HISTORICAL ANALYSIS

International investment agreements are the tools of international law by which two or more countries give reciprocal assurance for the protection of foreign investment in their countries. Long before there was no such regime of international property protection. In colonial time the foreign property was subject of the law of foreigner. At that time there was no certainty in international property regime. India had paid heavy price for the same. This paper tries to map out the whole journey of development of international property protection in India. In the first part paper tries to find out the international rule for the protection of foreign property in India. Unfortunately there was no such universal regime prevalent in any part of the world for the protection of foreign property. Second part deals with the development of International property protection in in post-colonial period. In this period newly independent colonies did not trust the foreigners due to its chequered history. Third part deals with the period after liberalization, privatisation and globalisation. In this period India had embraced the international investment law regime as an overall strategy of liberalization, privatisation and globalisation. In this period India had signed most of its International investment agreements. However, in this period India also faced with multiple investment claims by many foreign investors. In wake of these investment claims India had recently spelled out its new Model BIT and terminated its most of the International investment agreements. And finally concludes that there is some problem with the new Model BIT due to which Indian government still facing difficulty in inking new international investment agreements with the countries with whom India has had deep economic ties.