India doesn't plan huge changes to dispute resolution with foreign companies, source says
INDA•India plans to retain the requirement that foreign-company disputes go through local courts before international arbitration, while the five-year period may be shortened to two years. Tax disputes will remain outside investment treaties, a source said.
1. Dispute review
India is not planning major changes to how disputes with foreign businesses are resolved as it reviews bilateral investment treaties, a source with direct knowledge of the review said. Foreign companies have complained that the process is time-consuming and difficult.
2. Local courts and taxes
The requirement to pursue local remedies first will remain, while a second source said the five-year period may be shortened, possibly to two years. Taxation disputes will stay outside investment treaties, and India will not compromise on its sovereign right to tax, the first source said.
