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India-UK investment treaty lets companies sue govt
Orissa POST
|May 04, 2025
An investment treaty between Britain and India will contain a provision that allows companies to sue either government if they believe policy changes unfairly harm their investment or profits, two sources familiar with discussions told Reuters.
The Investor-State Dispute Settlement (ISDS) mechanism is aimed at protecting companies against possible unfair treatment under local laws, and will be included in an investment treaty that is expected to be struck alongside a free trade agreement shortly.
The mechanism has been criticised in recent years, including by Britain's previous Conservative government, for blocking efforts to fight climate change because fossil fuel producers can use it to protect their assets.
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