Bilateral Investment Treaties (BITs) are meant for promotion and protection of foreign investments. After emerging from several decades of economic isolation and import-substitution led policies, the Indian economy opened its doors to international trade and foreign direct investment in the early 1990s. In the mid-1990s, India also began entering into BITs. This engagement was part of a comprehensive economic agenda initiated by the Narasimha Rao government and its Finance Minister Dr. Manmohan Singh. Foreign Direct Investment (FDI) reforms were also among the first generation reforms undertaken to attract multinational corporations to open, expand and operate various production facilities in India.1 The decision to enter into BITs was also broadly in line with the overwhelming trend at that time that such treaties by providing investment security and a depoliticized environment could attract foreign investment. Although, subsequent studies have shown only a tenuous relationship between the flow of investment and the availability of a BIT framework, at least in India’s case, there is a positive correlation between the signing of the BITs and the FDI flows into several sectors of Indian economy.2 Although it is difficult to attribute any causal role to the signing of BITs, India attracted unprecedented foreign investment flows in the early days of economic liberalization.