India mired in over 20 trade arbitration cases

New Delhi

HAVING cancelled investment treaties with about 50 foreign governments last year, India is struggling to convince some to accept new terms that make it harder to seek international arbitration for disputes, sources familiar with the talks said.

From New Delhi's perspective, those treaties - mainly struck in the 1990s when it was desperate for foreign capital - left it too exposed to potential claims awarded by international arbitrators. To reduce that exposure, India has drafted a new model agreement that legal advisers say is similar to those used by other big emerging market economies such as Brazil and Indonesia. However, some of its foreign partners are baulking at the more restrictive approach.