The Vice President of India addressed the Colloquium on ‘International Arbitration: Indian Perspective,’ organized by the India International Arbitration Centre, emphasizing the urgent need to enhance the credibility of India’s arbitration system. He acknowledged the daunting challenge faced by Justice Gupta, Chairman of the International Arbitration Centre of India, in reforming the arbitral process and making India a global hub for dispute resolution.
Reflecting on historical developments, the Vice President pointed out that while India and the UK introduced similar arbitration laws in 1996, their trajectories have diverged significantly. He stressed the need for a convergence of key stakeholders—legislators, the executive, the judiciary, and the legal fraternity—to bring credibility and efficiency to arbitration in India. The comparison to Neil Armstrong’s moon landing underscored the significance of the reforms being initiated.
Expressing his concerns about India’s current standing in international arbitration, he noted that despite being home to one-sixth of humanity, the country remains far from being a preferred destination for global arbitration. He emphasized that mere rhetoric would not be enough; real, tangible efforts were necessary to bring about meaningful change. He urged stakeholders to acknowledge past shortcomings and work collectively toward a robust arbitration system.
He commended the presence of international sponsors and legal experts, underscoring their role in shaping India’s arbitration landscape. He expressed confidence in the Attorney General’s ability to drive much-needed legislative changes, particularly in addressing procedural inefficiencies that hinder the arbitration process.
The Vice President highlighted India’s remarkable economic growth, citing the country’s rise from the 11th to the 5th largest global economy, with projections of soon surpassing Japan and Germany. He detailed the nation’s rapid infrastructure development, digital transformation, and technological advancements, asserting that such progress necessitates an efficient arbitration system to resolve commercial disputes swiftly. He pointed out that with 6.1 billion digital transactions monthly, a thriving startup ecosystem, and a strong manufacturing sector, India must align its arbitration framework with its economic ambitions.
He emphasized that arbitration in India is often perceived as an extension of conventional adjudication rather than a specialized dispute resolution mechanism. He noted the dominance of judicial influence in arbitration and called for greater inclusion of experts from diverse fields such as oceanography, aviation, and infrastructure. Acknowledging the contributions of retired judges, he clarified that arbitration should not remain confined to a select group but should incorporate broader expertise to enhance its effectiveness.
He criticized the excessive judicial intervention in arbitration, pointing out that India’s Supreme Court frequently takes suo-moto cognizance of matters that should ideally be resolved through arbitration. He argued that arbitration should be the first choice for resolving disputes rather than an alternative to litigation. His vision extended beyond dispute resolution to fostering amicable settlements that nurture business relationships and ensure economic stability.
The Vice President concluded by urging a shift from “alternative dispute resolution” to “amicable resolution” and from “dispute resolution” to “difference resolution.” He advocated for arbitration processes that prioritize consensus-building over adversarial proceedings, ultimately fostering stronger commercial partnerships. Assuring his continued support for the cause, he expressed confidence that India could establish itself as a global leader in arbitration with sustained efforts and collective commitment.
