What are the implications of Vodafone winning the arbitration case against Indian government?

Vodafone PLC of UK won an international arbitration case against government of India in a $2 billion tax dispute at the International Arbitration Tribunal in Hague, the Netherlands. The IAT ruled that the imposition of retrospective tax by the Indian tax authorities was a breach of an investment treaty.

Now India has to forfeit $2 billion and in addition pay $5.47 million to Vodafone as partial compensation for legal costs. This dispute pertains to the capital gains tax demanded by the government from Vodafone during the acquisition of Hutch in 2007.

Vodafone had initiated arbitration proceedings against India in 2014. This should also come as a relief to Cairn Energy, which is in a similar dispute.