India seems to be fire fighting on the foreign direct investment front. They seem to be stuck in the old ways so much that they don't realize that their ways of doing things are anachronistic. Thus they are very resistant to change, even when such change has been proven to work in other countries.
The fact that India has more than 20 pending international arbitrations against it (more than any other country) is proof that something is amiss in India.
Allowing bilateral investment treaties (BIT) for the recognition and enforcement of arbitration awards to lapse also shows India's contempt for independent mechanisms for the recognition and enforcement of arbitration awards.
The new laws being proposed to replace the earlier mechanism of settlement using BIT should be better in every aspect to show India's sincerity in addressing the issue. India has to show that it is serious in addressing the dispute resolution issue through a fair process that addresses not only the dispute resolution but also the subsequent enforcement of the judgement/award in a fair and speedy manner. Anything less would not suffice.
International investors are not fools who can be hoodwinked with any kind of subterfuge.
