Bilateral investment agreement of the country happen to be "restrictive" while China is emerging as a major force when it comes to foreign investments, Niti Aayog Vice-Chairman Arvind Panagariya said on Tuesday.
"China is now emerging as a provider of outward investment. It is looking out to set rules for outward investment...Our own bilateral investment treaty happens to be rather restrictive," Panagariya said addressing the International G20 Conference organised by ICRIER in the national capital.
As per Chinese government data, in January-April 2016, the Chinese investors made direct investment overseas in 3,434 enterprises of 150 countries and regions.
Direct investment overseas amounted to RMB 391.45 billion (equivalent to USD 60.08 billion, up 71.8 per cent year on year).
In July, US Deputy Assistant to the US President and Deputy National Security Advisor for International Economics Adewale Adeyemo had blamed India for not being ambitious enough to conclude Bilateral Investment Treaty (BIT).
"To be frank, we are far apart on number of issues with regard to trade and investment with India. We feel our colleagues in India have not been as ambitious (on concluding BIT) as we want them to be but we remain open," Adeyemo had said here at a session on India-US Economic Relations.
Last year, government had approved the revised model text for Bilateral Investment Treaty (BIT) with a view to enhancing protection of foreign investors in India as well as Indian investments abroad, but taxation matters will remain out of its domain.