Centre-state Investment Treaty:

Centre-state Investment Treaty:	a treaty between centre and state to ensure effective implementation of BITs. State will voluntary decide to sign these treaties State that not signs---will be told to BIT partners BIT:  protect investments made by an investor of one country into another by regulating the host nation’s treatment of the investment
Importance	Will promote Competitive Federalism  Will ensure fulfilment of obligation by the state under BITs Will promote ease of doing business of foreign investor and their domestic recipients It will sensitize states on BITs Concern of states will be covered
Challenges	Legal: Entry 14 of Union list: entering into treaties Article 73: power to centre government to union list Both these: Any international treaty has been signed by the centre on behalf on Indian union. Hence, Externally: it is the responsibility of the centre even if a state does not comply with such treaties Internally: until legislative limitation, state are free to choose their course of action Thus: any such treaty will be use less Practical: Multi party system: can sour centre state relations Political Centre may blame on state Regional disparity
Way forward	Cooperative Federalism: Institutionalizing the involvement of the state governments in the process of treaty making. in not just BITs but also WTO, DTAA, FTAs etc Niti Ayog with CMs in the governing counsel can serve this purpose.