ABSTRACT
In March1 2015, the Government of India unveiled a new draft model BIT and on 28 December 2015, it released a significantly revised, final version. As India has repeatedly emphasised its intention to negotiate all new agreements on the basis of its new model, both iterations have been the focus of much attention in the international arbitration community. Given the criticism that the Draft Model BIT provoked in the arbitration community, it may have been expected that India would make some changes in its final version, while retaining the general approach outlined in the draft. Even more important than the Draft Model BIT’s explicit authorisation of State counterclaims is the extent to which it expanded the allowable scope of such counterclaims. The Draft Model BIT similarly appeared to lengthen the State’s sword, by allowing it to bring counterclaims based on any violation of domestic law—instead of only violations of an investment contract or international law.
