Challenges Hindering India's Arbitration Landscape
Despite India's aspirations to become a global arbitration hub, several challenges persist:
Preference for Ad Hoc Arbitration: A historical inclination towards ad hoc arbitration over institutional mechanisms has impeded the development of a robust arbitration culture. citeturn0search1
Inadequate Infrastructure: The lack of state-of-the-art facilities and support systems has been a significant barrier to attracting international arbitration cases.
Legislative and Judicial Support: Insufficient backing from legislative and judicial bodies has hindered the evolution of a conducive arbitration environment.
Vice President's Vision for Reform
Vice President Dhankhar proposed a paradigm shift in India's approach to arbitration:
Inclusive Participation: He advocated for involving domain experts from various sectors such as oceanography, aviation, and infrastructure in the arbitration process to enhance its credibility and effectiveness.
Terminological Shift: Suggesting a move from "dispute resolution" to "difference resolution," he emphasized addressing differences before they escalate into full-blown disputes.
Amicable Settlements: Dhankhar stressed the importance of fostering consensual convergence to secure and nurture commercial partnerships, thereby promoting economic growth.
India International Arbitration Centre's Role
Established under the India International Arbitration Centre Act, 2019, the IIAC aims to provide an autonomous institution for arbitration, mediation, and conciliation proceedings. citeturn0search4 Justice Hemant Gupta, a former Judge of the Supreme Court of India, currently chairs the IIAC, bringing extensive judicial experience to the institution.
Global Context and the Path Forward
India's ambition to position itself as a global arbitration hub faces stiff competition from established centers like Singapore and Dubai. The increased use of arbitration involving Indian parties indicates a growing recognition of its importance. citeturn0search7 However, to realize its potential, India must address existing challenges and implement the proposed reforms to enhance its arbitration framework's credibility and efficiency.
Vice President Dhankhar's address serves as a clarion call for introspection and action within India's arbitration ecosystem. By embracing comprehensive reforms and fostering a culture of amicable resolution, India can aspire to become a preferred destination for international arbitration, aligning with its broader economic aspirations.
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keywords: india arbitration reforms, vice president jagdeep dhankhar, india international arbitration centre, global arbitration hub, arbitration challenges in india, dispute resolution reforms
