Why in News?

• After terminating several bilateral investment treaties (BITs) in 2016–17, India is revamping its investment treaty framework to attract sustained foreign direct investment (FDI) while safeguarding its regulatory autonomy.
• Following the announcement in the Union Budget 2025–26 to review the 2016 Model BIT, the government is preparing a revised template, with four to five investment agreements expected to be finalised by the end of 2026.
• India has already concluded agreements with countries such as Saudi Arabia, Israel and the UAE, reflecting a gradual shift towards a more investor-friendly approach.

What’s in Today’s Article?

• What is a Bilateral Investment Treaty (BIT)?
• India’s Evolving Approach to Investment Treaties
• Investor Rights versus State Sovereignty
• Importance of Domestic Dispute Resolution
• Conclusion

What is a Bilateral Investment Treaty (BIT)?

• A BIT is an agreement between two countries that establishes the rules for protecting and promoting investments made by investors of one country in the territory of the other.
• Key objectives:
  • Provide legal certainty and protection against discriminatory or arbitrary treatment.
  • Build investor confidence and encourage cross-border investment.
  • Establish mechanisms for resolving investment disputes.
  • Balance investor protection with the host country's right to regulate in the public interest.
• Evolution of India’s BIT framework:
  • 1993 Model BIT: India began concluding BITs under its original model, subsequently amended in 2003.
  • 2016 Model BIT:
    • India adopted a revised framework emphasising the State's right to regulate and imposing stricter conditions on access to ISDS - Investor-State Dispute Settlement.
    • ISDS allows foreign investors to bring claims against host governments for alleged violations of investment treaty obligations.
    • India had signed BITs with 83 countries, of which 74 were ratified (as per data presented in Parliament in March 2023).
  • 2016–17: India issued termination notices to numerous treaty partners (~68 countries) and sought renegotiation under the revised model.
• Recent developments: India has signed BITs with countries including Belarus, Kyrgyz Republic, Brazil, UAE, Uzbekistan, and Taiwan.

India’s Evolving Approach to Investment Treaties:

• Relaxation of the Exhaustion of Local Remedies (ELR) requirement:
  • ELR requires foreign investors to approach the host country's domestic courts or administrative authorities before initiating international arbitration.
  • India’s 2016 Model BIT introduced a five-year local-remedies requirement, which was criticised by investors for delaying access to international dispute settlement.
  • Recent agreements indicate greater flexibility -
    • UAE: The 2024 BIT reduced the local-remedies period to three years.
    • Saudi Arabia: The recently concluded agreement provides for a two-year period before investors can approach international arbitration.
  • Some trading partners have sought a one-year period, but India has not accepted such demands so far.
  • The Saudi agreement is particularly significant amid expectations of investment in India's refinery sector.
  • The government argues that the revised approach improves investor access to dispute settlement while preserving the State's regulatory authority.
• Need for a Consistent Treaty Framework:
  • India should adopt a more uniform approach to ELR provisions.
  • A period of one to two years for pursuing domestic remedies could improve investor confidence.
  • The overall limitation period for initiating investor-state claims should also be practical rather than excessively restrictive.

Investor Rights versus State Sovereignty:

• India's decision to terminate several BITs followed concerns that adverse international arbitral awards could constrain domestic policymaking.
• Developing countries like South Africa and Indonesia have also withdrawn from or restructured investment treaty arrangements to preserve regulatory autonomy.
• Key concerns associated with BITs and ISDS:
  • Erosion of policy space: Treaty obligations may constrain governments' ability to regulate in the public interest.
  • High litigation costs: Defending international investment claims can impose a substantial financial burden on governments.
  • Regulatory chilling effect: Governments may hesitate to introduce legitimate regulations for fear of costly arbitration.
  • Constraints on technology transfer: Treaty protections may limit the policy instruments available to developing countries seeking to strengthen domestic productive capabilities through FDI.
  • These concerns have fuelled demands for reforming the international investment regime, particularly in the Global South.
• Changing international practices:
  • The debate is not confined to developing countries. For example,
    • The European Union has withdrawn from the Energy Charter Treaty amid concerns about compatibility with its climate objectives.
    • The US and Canada removed ISDS provisions from the United States–Mexico–Canada Agreement (USMCA).
    • New Zealand has opted out of ISDS provisions in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
  • These developments illustrate growing scrutiny of the balance between investment protection, climate action and domestic regulatory autonomy.

Importance of Domestic Dispute Resolution:

• Requiring investors to exhaust domestic remedies can give governments an opportunity to understand grievances and resolve disputes before they escalate to international arbitration.
• However, this approach will work only if investor disputes are resolved efficiently. A treaty provision alone cannot compel domestic courts to prioritise foreign investors over Indian investors.
• A possible way forward is to establish a statutory, time-bound grievance-redressal mechanism accessible to both domestic and foreign investors.
• Faster dispute resolution could prevent disputes from escalating, reduce litigation costs and improve India's investment climate.

Conclusion:

• India's investment treaty reform must strike a careful balance between investor confidence and sovereign regulatory autonomy.
• A predictable, transparent and time-bound dispute-resolution framework, supported by a modern and consistent Model BIT, can help attract long-term FDI without compromising legitimate public-interest regulation.

Context

• The Bhagavad Gita (Verse 18.46) teaches that a person attains perfection by performing their work with dedication and devotion.
• This principle emphasises the dignity of labour and recognises craftsmanship as a virtue.
• India’s performance at the 48th WorldSkills Competition in Shanghai in September 2026 reflects the growing potential of its skilled workforce.
• Securing 10th position globally with 26 medals, including six silver medals, India demonstrated that vocational skills are essential for economic productivity and national development.

Skilled Talent on the World Stage

• The WorldSkills Competition, held every two years, is considered the Olympics of vocational skills.
• It brings together over 1,400 participants from approximately 70 countries to demonstrate expertise in welding, robotics, cybersecurity, industrial design and other trades.
• India’s performance has improved significantly, rising from 39th position in 2011 to 19th in 2017 and 13th in 2019 and 2024.
• In Shanghai, India achieved its best-ever performance, winning six silver medals and 20 Medallions for Excellence. Its 70-member team competed across 63 skills.
• Mohammed Salam won silver in dental prosthetics, Kovid Gangrade in digital interactive media design, and Saniya Joshi in retail sales.
• Smriti Nambiar, Parth Vohra and Mehrunissa Begum also secured silver medals in bakery, industrial design technology, and logistics and freight forwarding, respectively.
• These achievements challenge the traditional preference for academic qualifications over vocational careers.
• Skill-based professions deserve recognition equal to academic achievements, as economic development requires both theoretical knowledge and practical expertise.

Humble Beginnings to Excellence

• India’s medal winners demonstrate how talent can flourish through determination and appropriate opportunities.
• Kaif Khan from Lucknow developed his car-painting skills while working in a private automobile workshop after Class 10.
• Following success in IndiaSkills competitions, he received industry training and international exposure before earning a Medallion for Excellence in Shanghai.
• Mohammed Salam from Tamil Nadu won silver in dental prosthetics, a discipline requiring exceptional precision.
• Other Indian participants received recognition in automobile technology, additive manufacturing, Industry 4.0 and robot systems integration.
• These achievements demonstrate that talent exists across diverse social and geographical backgrounds, but access to quality training remains crucial.
• Identifying promising candidates, providing practical instruction and offering industry exposure can transform local talent into internationally competitive professionals.

From Capex and Opex to Skill-Ex

• Economic development traditionally emphasises capital expenditure (Capex), which creates infrastructure, and operational expenditure (Opex), which maintains it.
• However, factories, machinery and infrastructure cannot deliver their full potential without trained workers.
• Skill-Ex, or deliberate investment in human skills, must therefore become the third pillar of development.
• It improves productivity, strengthens industrial competitiveness and enables workers to operate advanced technologies effectively.
• The PM-SETU scheme, or Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs, reflects this approach.
• With an allocation of ₹60,000 crores, it aims to upgrade 1,000 government Industrial Training Institutes into 200 hubs and 800 spokes, with industry partners managing the clusters.
• Its success will depend on modern equipment, qualified instructors, updated curricula and measurable employment outcomes.

There Must Be a Focus on ‘Skill-Ex’

• Government initiatives alone cannot establish a sustainable skilling ecosystem.
• Industry participation is essential because employers understand evolving technological requirements and workplace needs.
• Businesses should invest in workforce training as seriously as they invest in machinery and infrastructure.
• Industry-linked apprenticeships, practical training, recognised certifications and continuous reskilling can reduce the gap between educational qualifications and employment requirements.
• India must also address the social stigma surrounding vocational occupations, uneven training quality and limited career progression.
• Skilled workers need fair wages, safe working conditions and opportunities for advancement.
• The dignity of labour must translate into practical recognition, rather than remaining a symbolic ideal.

Conclusion

• India’s WorldSkills 2026 performance demonstrates the potential of its young workforce when talent receives systematic training and institutional support.
• The priority now is to convert competitive achievements into large-scale employability, higher productivity and inclusive growth.
• Strengthening vocational institutions, expanding industry partnerships and investing in Skill-Ex can prepare India’s workforce for technological transformation.
• Ultimately, national progress depends not only on policymakers and infrastructure developers but also on those who weld, bake, paint, repair and manufacture with precision.
• As the Bhagavad Gita teaches, dedicated work is a source of excellence and service to society.

Context

• The 18th BRICS Summit, held in New Delhi on September 12–13, 2026, demonstrated the grouping’s ability to reconcile divergent interests through the unanimous adoption of the New Delhi Declaration.
• Under India’s chairmanship, the summit reinforced strategic autonomy, multipolarity and consensus-building.
• However, institutional weaknesses, geopolitical rivalries and economic inequalities continue to limit BRICS’ effectiveness.

The New Delhi Declaration: Major Achievements

• The declaration addressed global governance, trade, finance, energy, climate change, technology, health and agriculture.
• Its major objectives included:
  • Promoting local-currency trade and interoperable cross-border payment systems.
  • Implementing the BRICS Economic Partnership Strategy 2030 and the Global Value Chain Action Plan for 2026–2030.
  • Reforming the United Nations and international financial institutions to improve developing countries’ representation.
  • Supporting de-escalation in West Asia and humanitarian access to Gaza.
  • Strengthening cooperation in artificial intelligence, food security and sustainable development.
• The declaration also defended the World Trade Organization (WTO) and its rules-based trading system.
• Nevertheless, the success of these initiatives depends on translating commitments into practical outcomes.

The Message and the Approach

• Reforming Global Governance
  • Existing international institutions inadequately reflect contemporary economic and demographic realities.
  • India advocated reforms to the United Nations, International Monetary Fund (IMF) and World Bank to provide emerging and developing economies with greater representation.
  • Prime Minister Narendra Modi urged BRICS leaders to develop ten proposals for global governance reform.
  • The emphasis on multi-polarity reflected the demand for a more inclusive international order.
  • However, meaningful reform requires sustained negotiations and political commitment.
• Strategic Autonomy and Diplomatic Engagement
  • India’s approach reflected strategic autonomy and multi-alignment, allowing cooperation with competing powers without excessive dependence on any single country.
  • The participation of Chinese President Xi Jinping, Russian President Vladimir Putin, the UAE and Iran demonstrated BRICS’ potential to facilitate dialogue.
  • However, diplomatic cordiality does not necessarily resolve underlying disputes.
  • Sustained cooperation requires members to manage differences while pursuing common interests.
• Artificial Intelligence and Sustainable Development
  • The declaration recognised artificial intelligence (AI) as a driver of economic growth, improved public services and sustainable development.
  • It encouraged cooperation in computing resources, research, skills and innovation.
  • Collaboration in technology, healthcare, energy and agriculture could help developing countries address shared challenges and reduce technological inequalities.

What a More Sober Assessment Shows

• The Limits of Multilateral Cooperation
  • Since the first BRIC summit in 2009, major demands for reforming the IMF, World Bank and United Nations have remained substantially unfulfilled.
  • BRICS has also failed to achieve sufficient economic integration to challenge the dominance of the Bretton Woods institutions effectively.
  • This reveals a persistent gap between declared ambitions and practical achievements.
  • Consensus has limited value without implementation, institutional capacity and measurable results.
• From Multilateralism to Pragmatic Coalitions
  • The contemporary world increasingly favours ad hoc cooperation and interest-based partnerships over permanent alliances.
  • BRICS members differ in political systems, economic priorities and strategic objectives.
  • Consequently, the grouping is better understood as a flexible platform for consultation and selective cooperation than as a unified geopolitical bloc. 

The China Factor

• Growing Economic Asymmetry
  • China’s economic and political influence has expanded considerably relative to other BRICS members, creating an imbalance of power within the grouping.
  • Such dominance risks reproducing the concentration of power that BRICS seeks to challenge internationally.
  • China’s growing influence also complicates its claim to represent the diverse interests of the Global South.
• India–China Strategic Rivalry
  • Relations between India and China remain uneasy despite diplomatic efforts following the 2020 Galwan Valley clash.
  • Strategic mistrust between two leading BRICS members constrains collective decision-making.
  • India must ensure that BRICS remains a platform for cooperation rather than an instrument of disproportionate influence by any single member.

Implications for India

• The summit enhanced India’s diplomatic visibility and demonstrated its ability to facilitate dialogue.
• Nevertheless, BRICS membership does not automatically guarantee economic benefits or political leverage.
• India should pursue a balanced foreign policy, combining engagement with BRICS, cooperation with Western economies and partnerships across the developing world.
• Its influence will ultimately depend on domestic economic strength, diplomatic credibility and effective international coalitions.

The Way Forward

• Institutional reform: Advance realistic proposals for more representative global governance.
• Economic integration: Strengthen local-currency trade, payment systems, investment and value chains.
• Conflict management: Develop consultation mechanisms to prevent bilateral disputes from obstructing cooperation.
• South-South cooperation: Deliver measurable benefits through healthcare, agriculture, renewable energy and technology.
• Strategic autonomy: Enable India to pursue national interests through diversified international partnerships.

Conclusion

• The New Delhi Summit reaffirmed the demand for a more inclusive and multipolar international order while strengthening India’s diplomatic profile.
• However, institutional weaknesses, limited economic integration, geopolitical rivalries and China’s growing dominance continue to constrain BRICS.
• Its future relevance depends on converting consensus into concrete outcomes. India should engage actively with BRICS while preserving strategic autonomy and diversified partnerships.
• The true measure of BRICS’ success lies in practical cooperation and meaningful global reforms, not merely unanimous declarations.

About Bhavanisagar Dam:

• Bhavanisagar Dam and Reservoir, also called Lower Bhavani Dam, is located on the Bhavani River (a major tributary of the Cauvery River) in Tamil Nadu.
• It is one of the world's largest earthen dams.
• It is a Multi-Purpose Dam.
  • It is used to store water for irrigation, generate electricity, supply drinking water, control floods, and control the silt formation in the downstream river.
  • The dam feeds the Lower Bhavani Project Canal and is the second largest dam in Tamil Nadu.
  • It forms the tail end of the long river chain on the eastern side of the Western Ghats in Nilgiris.

About Snow Leopard:

• It is a large wild cat native to the high-altitude mountain ranges of Central and South Asia.
• It is popularly known as the “Ghost of the Mountains” because of its elusive nature and excellent camouflage.
• Scientific Name: Panthera uncia
• Formerly classified as Leo uncia, the snow leopard has been placed with the lion, tiger, and other big cats, in the genus Panthera.
• Habitat and Distribution:
  • They inhabit the highlands of central Asia and the Indian subcontinent, ranging from the Himalayas, Hindu Kush, and Plateau of Tibet in the south to the Altai Mountains and highlands, west of Lake Baikal in Russia.
  • They are found in rocky, shrub-dominated, and grassy habitats occurring between 500 and 5,800 meters.
  • India is home to the snow leopards spread across the Himalayas and Trans-Himalayan region.
  • It is the state animal of Himachal Pradesh.
• Conservation Status:
  • IUCN Red List: Vulnerable.

About Green Keelback:

• It is a non-venomous, semi-aquatic snake that is native to South and Southeast Asia.
• Scientific Name: Macropisthodon plumbicolor
• Habitat and Distribution:
  • It is found in parts of South and Southeast Asia, including India, Sri Lanka, Bangladesh, Myanmar, Thailand, Malaysia, and parts of Indonesia.
  • It prefers wetlands, including ponds, rivers, streams, rice fields, and marshy areas.
  • It is often found in areas with abundant vegetation where it can hide and hunt in the water and on land.
• Features:
  • Keels: The term "keelback" comes from the pronounced ridges or "keels" along the scales of their bodies. These keels provide texture and grip, assisting the snake in climbing and swimming.
• Conservation Status:
  • IUCN Red List: Least Concern.

About Gomti River:

• It is a tributary of the Ganges (Ganga) River, flowing entirely through the state of Uttar Pradesh.
• The river is also known by the names Gumti or Gomati.
• Course:
  • It originates from Gomath Tal (Fulhar Jheel) near the town of Madho Tanda in the Pilibhit district which lies within the Pilibhit Tiger Reserve.
• The entire Gomti basin is underlain by thick alluvial sediments of the Quaternary age.
  • The alluvial sediments consist of boulders, pebbles, gravel, sand, silt, clay, and kankars.
  • The unconsolidated unit may be further subdivided into younger alluvium and older alluvium.
  • The younger alluvium occupies the present-day flood plains, while the older group occupies elevated portions, mainly the doab portions.
  • The older alluvium is characterized by kankar nodules at depth otherwise it is similar to the younger alluvium.
• It is a perennial river. The river is characterised by sluggish flow throughout the year, except during the monsoon season, when heavy rainfall causes a manifold increase in the runoff.
• Major Tributaries: Sai River, Chowka River, Kathina River, and Saryu River.
• There are various cities that are situated on the banks of River Gomti, such as Sultanpur, Lucknow, Jaunpur, and Lakhimpur Kheri.
• Over the years, Gomti has become one of the most polluted rivers in Uttar Pradesh.

About Folsomia ciega and Folsomia unioculata:

• They are two new species of tiny soil-dwelling creatures called springtails.
• They were discovered in the Nilgiri Hills of the Western Ghats.
• Both species belong to the genus Folsomia.
• Folsomia ciega, named after the Spanish word for ‘blind’, lacks eyes entirely.
  • It is a small, pale, and elongated springtail and is distinguished by the arrangement of bristles and a two-pronged tail structure called a mucro.
• Folsomia unioculata, meaning ‘one-eyed’ in Latin, has a single eye on each side of its head.
  • It differs from related species that either have multiple eyes or are completely blind.

What are Springtails?

• Springtails (Collembola) are tiny insect-like creatures.
• They are one of the world’s tiniest arthropods.
• They lack wings, and the body is divided into three parts: head (with short antennae), thorax, and abdomen.
• They are creamy white or grey in colour, with some having yellow, orange, metallic green, or red scales.
• Their skin has comb-like hexagonal or rhombic granules that are water repellent and self-cleaning.

About National SC-ST Hub Scheme:

• It was launched in October 2016.
• It is one of the flagship schemes of the Ministry of Micro, Small & Medium Enterprises.
• It is aimed at capacity enhancement of Schedule Caste – Schedule Tribe entrepreneurs and promoting “entrepreneurship culture” amongst the SC-ST population.
• Implementation: It is implemented by the National Small Industries Corporation Ltd. (NSIC).
• The NSSH scheme supports purchase of plant & machinery/equipment; capacity building & training, market linkage, facilitation for participation in exhibitions, credit, Udyam registration and GeM onboarding.
  • One of the major components of NSSH is the Special Credit Linked Capital Subsidy Scheme (SCLCSS).
  • Under the scheme, new and existing SC/ST-owned MSEs can receive a 25 per cent capital subsidy, capped at ₹25 lakh, for investment in plant, machinery and equipment financed through institutional credit.
• Functions of the scheme:
  • To encourage SC/ST owned units to be part of 4% of total procurement being made by Central/State Governments, CPSEs and other government agencies
  • To prepare strategy for intervention through industry associations to sensitize, encourage and enable the SC/ST owned units for participation in Public Procurement Process
  • Facilitating SC/ST Entrepreneurs to be part of vendor development programs and mentoring support by specific CPSE matching the products/services of such entrepreneurs
  • Capacity building of existing and prospective SC/ST entrepreneurs through skill development programs
• Significance: These initiatives are fostering inclusive economic growth, promoting self-reliance and strengthening the MSME ecosystem by creating greater opportunities across India.

About Slaty Egret:

• It is a small, shy water bird mainly found in Botswana’s Okavango Delta.
• Appearance:
  • It features a slender form with long legs and neck, distinctive of egrets.
  • It exhibits slaty gray plumage with a subtle purple tint, giving it a unique coloration.
• Habitat: It is usually found in seasonal wetlands and floodplains.
• Distribution: The slaty egret lives in south-central Africa. The largest populations are found in Zambia and Botswana.
• Behavior: It is a fishing maestro, known for its unique "foot-ruffling" technique—stirring up the water with its feet to flush out tasty fish.
• Nesting Preference: It typically breeds in colonially dense vegetative areas on islands or marshlands, usually away from potential predators.
• Diet: The Slaty Egret is known for its diverse diet primarily consisting of fish, amphibians, and aquatic invertebrate.
• Threats: It is highly dependent on wetlands, which makes it vulnerable to habitat loss due to agricultural expansion and changes in water management.
• Conservation Status
  • IUCN Red List: Vulnerable