Q.3) Retrospective changes in policies by the Government not only leads to various disputes but also impacts overall economic environment. Comment (10 Marks)

“Mentor’s Comments”

https://www.thehindu.com/opinion/op-ed/rattling-foreign-investors/article35026303.ece https://www.economist.com/business/2020/12/12/why-more-indian-business-disputes-are-settled-elsewhere

In the intro, mention the issue of retrospective taxation. In the body, discuss the factors such as retrospective policy changes leading to dispute between investors and government.

In the next part mention the implications such as reduced investment, low investor confidence, impact on international image of the government etc.

Conclude by mentioning the need to deal with the issues that leads to dispute by addressing these issues through BITs

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