Q.3 India is one of the most frequent respondent-states globally in terms of investor-state dispute settlement (ISDS) claims. In the context of this, examine the reasons for such frequent disputes and suggest the way forward. (10 Marks)

Mentor’s comment-
  • https://www.thehindu.com/opinion/op-ed/a-bit-to-review/article38225318.ece
  • In the body, mention the Cairn Energy case.
  • In the body, mention reasons for frequent dispute such as changing laws, annulling agreements, judicial delays, wide scope for interpretations in treaties etc. In the suggestions mention fine-tuning the Model BIT, increasing the capacity of government officials in the area of investment treaty arbitration, speeding up the judicial process etc.
  • Conclude by mentioning the need to implement the Standing Committee’s suggestions.
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