Economic Nationalism

This chapter looks at the evolution of India’s approach towards international investment law, against the backdrop of India’s overall and economic approach towards foreign investment. After independence, from the period of 1947–1965, India followed a relatively open and liberal foreign investment regime. Jawaharlal Nehru’s economic pragmatism ensured that India kept its doors open to foreign investment though the economic growth model was led by the public sector. India also consciously did not indulge in nationalization of foreign investment in total contradiction to what countries like Soviet Russia and China did. However, India turned towards the Left during Indira Gandhi’s times imposing restrictions on foreign investment. India’s approach towards international investment law, at least at the multilateral level, reflected the domestic approach towards foreign investment. At the bilateral level, India appeared more open to international law on protection of foreign investment although India did not sign a BIT during this phase.