Topic 1 : BITs in pieces
Introduction: While presenting the interim Union budget, Finance Minister Nirmala Sitharaman stated that India will be negotiating Bilateral Investment Treaties (BITs) with its trade partners to boost the inflow of foreign direct investment. This announcement comes at a time when India’s bilateral treaties have dried up, more so, since the adoption of the Model BIT in 2016.
What are Bilateral Investment Treaties (BITs)?
- BITs are agreements between two countries for the reciprocal promotion and protection of investments in each other’s territories by individuals and companies.
History of BITs in India
- It was in the mid-’90s that BITs were initiated by the Indian government.
- The pretext was to offer favourable conditions and treaty-based protection to foreign investors and investments.
- The first BIT signed by India was with the UK on March 14, 1994.
- The BIT regime gained attention in the year 2010 with the settlement of the first-ever investor treaty claim filed against India, and in 2011, when India suffered its first adverse award in a dispute arising out of the Australia-India BIT — White Industries v Republic of India — where the government was ordered to pay $4.1 million by the International Chamber of Commerce.
- By 2015, there were 17 known BIT claims contested by India.
- The most prominent of these was the one involving Cairn Energy Plc, a British oil and gas company, which secured a $1.2 billion award against the Indian government in an investor-state dispute.
The 2016 model BIT
- Given the burden that was being levied on the public exchequer, the government was compelled to revisit the 1993 BIT model.
- This led to the adoption of the 2016 model BIT resulting in the government terminating 68 of the 74 treaties it had executed until 2015 with a request to renegotiate terms based on the revised text.
Concerns with the 2016 model BIT
- The adoption of the 2016 model was seen more as a knee-jerk protectionist measure rather than a nuanced and calibrated approach to encouraging foreign investment.
- The well-recognised doctrines of public international law such as “fair and equitable treatment” and “most favoured nation” were conspicuous by their absence.
- Moreover, the 2016 model BIT (Chapter IV) provided that an investor must exhaust local remedies before taking recourse to international arbitration.
- Given the extant situation, it is not surprising that India is finding it difficult to re-negotiate terms with other countries which is creating an impact of FDI.
- According to government data, FDI equity inflows in India declined 24 per cent to $20.48 billion in April-September 2023.
- The total FDI — which includes equity inflows, reinvested earnings and other capital — contracted 15.5 per cent to $32.9 billion during the period under review against $38.94 billion in April-June 2022.
India’s course correction from the 2016 model BIT
- It is not without reason that India is making a significant departure from the 2016 model as it endeavours to conclude a free trade agreement (FTA) with the UK — an endeavour which has now seen over 14 rounds of negotiations.
- A major stumbling block in these negotiations has been in relation to the settlement of disputes and the proposed FTA is likely to dispense with the requirement of exhausting local remedies by providing a mechanism for timely settlement of disputes through international arbitration.
The way forward
- In 2021, the Parliamentary Standing Committee on External Affairs made several recommendations to revisit the existing BIT regime.
- This included the timely settlement of disputes through pre-arbitration consultations and negotiations.
- It has also called for the development of local expertise in the field of investment arbitration to not only ensure good representation in investor-state disputes but also to ensure timely review of treaties to align with the global best practices.
- India’s ranking in ease of contract enforcement is still abysmally low at 163 out of 190 and therefore, it is critical that these recommendations are implemented in letter and spirit.
Conclusion: A progressive approach to BITs will be an important component to attract and sustain long-term foreign investments. The government’s renewed push is a step in the right direction. However, it must do away with its one-size-fits-all approach, while paving the way for rapid yet sustainable growth in cross-border flows.
Topic 2 : Everyone in
Introduction: The Ministry of Information and Broadcasting, on January 8, issued its draft “Guidelines of Accessibility Standards in the Public Exhibition of Feature Films in Cinema Theatres for Persons with Hearing and Visual Impairment”.
More about the guidelines
- The guidelines, for which stakeholder comments are invited till February 15, constitute another welcome step towards ensuring that an experience that most movie buffs take for granted can be accessed by a section of Indians who continue to be largely excluded from it.
- They carry forward the spirit of the Rights of Persons with Disabilities (RPwD) Act of 2016.
The statistics of persons with disabilities in India
- According to estimates of the World Health Organisation, approximately 84 million Indians are deaf and hard of hearing and 75 million are blind and visually impaired.
Efforts that were made for the inclusion of PwDs
- There has long been a demand for making the movie-going experience more accessible to them.
- Efforts by organisations, such as the Delhi-based NGO Saksham, and a handful of willing collaborators in the industry, like actor-producer Aamir Khan, have resulted in some films in the last couple of decades, such as Dangal and Munnabhai MBBS, having features like audio description, subtitles and closed captions.
- The draft guidelines require producers to deliver two versions of a film for certification by the CBFC, including one with accessibility features enabled, and call on theatres to schedule special shows for PwDs and the use of special equipment and mobile apps.
- Such steps can help make accessibility the norm as is the case in countries such as the US and UK.
- In the UK, theatres have seats into which a visually impaired viewer’s headphones may be plugged so that she can hear the audio description of the film being played.
- In December 2022, the Supreme Court formed a committee to make the court more disabled-friendly and has recently released a handbook for combating stereotypes about PwDs.
- Last year, the government made it mandatory for digital offerings to meet the standards set under the RPwD Act.
What more can be done
There's a lot that can be done to make entertainment more PwD-friendly, and it goes beyond simple accessibility features. Here are some key areas for improvement:
Accessibility:
- Closed captions and audio descriptions: Ensure all content has high-quality closed captions and audio descriptions for people with hearing and vision impairments.
- Keyboard navigation and screen reader compatibility: Design websites, apps, and streaming platforms to be fully navigable using keyboards and compatible with screen readers.
- Adjustable font sizes and color contrast: Offer options for users to adjust font sizes and color contrast to improve readability for those with visual impairments.
Representation:
- Diverse characters and storylines: Actively include characters with disabilities in storylines, and portray them authentically and respectfully.
- Avoid tokenism and stereotypes: Ensure portrayals of disability are nuanced and avoid harmful stereotypes.
- Feature creators with disabilities: Hire and empower creators with disabilities to write, direct, and produce content that reflects their lived experiences.
Marketing and awareness:
- Promote and advertise accessible content: Clearly highlight which content is accessible and how users can access it.
- Partner with disability-led organizations: Collaborate with organizations representing various disabilities to gain insights and feedback.
- Raise awareness: Educate the public about the importance of inclusive entertainment and the diversity of the disabled community.
Beyond the basics:
- Sensory-friendly programming: Offer sensory-friendly screenings or performances for individuals with sensory sensitivities.
- Physical accessibility: Ensure venues and events are physically accessible for individuals with mobility impairments.
- Assistive technology support: Provide support for users who require assistive technologies like sign language interpreters or braille displays.
Conclusion: Enabling PwDs to more easily access and savour one of India’s most beloved art forms, a globally exported cultural product and significant source of soft power — cinema — is yet another step in the right direction.