NEW DELHI, Sept. 25 -- The Union Cabinet will shortly consider a new model bilateral investment treaty (BIT) template to make it more attractive for foreign companies to invest in India by easing the dispute-settlement process, two senior government officials said.

The proposed model will substantially shorten the five-year mandatory litigation timeframe for companies under the existing 2015 template before pursuing global arbitration for dispute settlement. However, it won't include tax concessions that would undermine India's sovereign policy-making space, the officials said on condition of anonymity.

The new treaty template is planned as India seeks sustained foreign investments to support its economic growth and stabilize its curren...