16.6       ndian   onom
     strengthened the foreign investors’ confidence in   order to promote and protect on reciprocal basis
     the Indian economy.                                 investment of the investors. Government of India
                                                         have, so far, (as by July 2012) signed BIPAs with
     migA                                                82 countries out of which 72 BIPAs have already
     The Multilateral Investment Guarantee Agency        come into force and the remaining agreements are
     (MIGA), set up in 1988 encourages foreign           in the process of being enforced.17 In addition,
     investment in developing economies by offering      agreements have also been finalised and/or being
     insurance (guarantees) to foreign private investors negotiated with a number of other countries.
     against loss caused by non-commercial (i.e.,              The objective of the BIPA is to promote and
     political) risks, such as currency transfer,        protect the interests of investors of either country
     expropriation, war and civil disturbance. It also   in the territory of other country. Such agreements
     provides technical assistance to help countries     increase the comfort level of the investors by
     disseminate     information     on     investment   assuring a minimum standard of treatment in all
     opportunities.                                      matters and provides for justifiability of disputes
                                                         with the host country (it should be noted here that
     icsiD                                               India is not a member of the World Bank group’s
     The International Centre for Settlement of          body, the ICSID, serving the same purpose. BIPA
     Investment Disputes (ICSID), set up in 1966         is India’s version. While the former is a multilateral
     is an investment dispute settlement body whose      body, the latter is a bilateral one).
     decisions are binding on the parties. It was
     established under the 1966 Convention on the            aSIan developMent Bank
     Settlement of Investment Disputes between
                                                         Set up in 1966 with 31 founding members (India
     States and Nationals of Other States. Though
                                                         being one of them), today (by March 2017) it has
     recourse to the centre is voluntary, but once the
                                                         grown to encompass 67 members—of which 48 are
     parties have agreed to arbitration, they cannot
                                                         from Asia and Pacific and 19 from outside. It has
     withdraw their consent unilaterally. It settles the
                                                         its headquarters situated at Manila, Philippines.
     investment disputes arising between the investing
                                                         The purpose of the Bank is to foster economic
     foreign companies and the host countries where
                                                         growth and co-operation in the region of Asia
     the investments have been done.
                                                         and the Far East and to contribute to economic
          India is not its member (that is why the       development of the developing member countries,
     Enron issue was out of its preview). It is believed collectively and individually. The six functions of
     that being signatory to it encourages the foreign   the Bank are as clubbed below:
     investment flows into an economy, but risks
                                                               (i) Promoting investment—public and
     independent sovereign decisions, too.
                                                                    private—and          harmonious            regional
                                                                    development with special regard to less
        IndIa’S BIpa                                                developed member countries;
     As part of the Economic Reforms Programme                (ii) Coordinating development policies and
     initiated in 1991, the foreign investment policy               plans (on request); promoting intra-
     of the Government of India was liberalised                     regional trade; providing technical
     and negotiations undertaken with a number
                                                           17.    Government of India, Ministry of Commerce &
     of countries to enter into Bilateral Investment              Industry, Government of India, N. Delhi, as on 5 April 5,
     Promotion & Protection Agreement (BIPA) in                   2016.