New Delhi: The Indian government is intensifying its efforts to position the country as a premier destination for international commercial arbitration, leveraging legislative updates and proactive institutional outreach.
In a significant vote of confidence for domestic institutional frameworks, several top-tier Central Public Sector Enterprises (CPSEs) have officially integrated the India International Arbitration Centre (IIAC) into their dispute resolution clauses for the 2024-25 financial year. The early adopters include:
Oil and Natural Gas Corporation (ONGC)
Gas Authority of India Limited (GAIL)
Bharat Petroleum Corporation Limited (BPCL)
The IIAC, established under a 2019 Act, is designed as an autonomous body to provide world-class, cost-effective arbitration services, supported by a panel of reputed arbitrators and administrative infrastructure.
To support this transition, the government has introduced critical amendments to the Arbitration and Conciliation Act, 1996, in 2015, 2019, and 2021. These legislative shifts focus on:
Speed & Efficiency: Ensuring the timely conclusion of proceedings and quick enforcement of awards.
Neutrality: Guaranteeing the impartiality of arbitrators to build global trust.
Judicial Restraint: Minimizing court intervention in the arbitral process to allow institutions to flourish.
While the law provides for an Arbitration Council of India to grade institutions and accredit arbitrators, the seven-member body is yet to be formally constituted.
Strategic Outreach and Knowledge Sharing
The Department of Legal Affairs and the IIAC have launched a series of high-profile initiatives to build awareness:
Industry Collaboration: A June 2025 conference held with ONGC focused on educating CPSEs on the advantages of institutional over ad-hoc arbitration.
Export Focus: A September 2025 webinar with the Federation of Indian Exports Organisation (FIEO) addressed commercial dispute resolution for exporters.
Academic Discourse: The IIAC hosted an Oxford-style debate at the Delhi High Court and launched its inaugural annual magazine featuring insights from global practitioners.
Union Minister of State for Law and Justice, Shri Arjun Ram Meghwal, shared these developments in the Lok Sabha, reaffirming the government’s commitment to creating a robust alternative dispute resolution (ADR) ecosystem in India.