INDIA Trends and Developments Contributed by: Amit Mishra and Mitakshara Goyal, Svarniti Law Offices
International Arbitration in India: An Introduction India has been moving towards realising its aim of transforming itself into a global arbitration hub. This is visible from two distinct but closely related develop - ments that contribute to the strengthening of arbitra - tion within the Indian landscape. First, there has been a clear shift away from tradition - al ad hoc proceedings towards institutional arbitra - tion. The Mumbai Centre for International Arbitration (MCIA) showcases this trend, with a 48% increase in new cases – up from 23 in 2023 to 34 in 2024, amounting to a total dispute value of approximately USD257 million. This upward trajectory reflects the growing confidence among Indian parties in struc - tured and rule-based arbitration processes. Almost 91% of MCIA-administered awards in 2024 were final - ised within 18 months, with none of them being set aside by courts, indicating improved efficiency and judicial confidence. Secondly, there has been an increased affirmation of the “pro-enforcement bias” found in the New York Convention in the context of enforcing foreign arbitral awards. These developments coalesce to increase India’s viability as a suitable location for internation - al arbitration proceedings, both seated in India and involving Indian parties. However, all is not as well as it seems. While there has been a trend of confirming and enforcing foreign arbitral awards, there is also an emerging trend of dis - satisfaction and discouragement from arbitration by government entities. This presents the duality of the arbitration landscape in India: on the one hand, there is an increased focus towards making India the global arbitration hub, while on the other there is increasing reluctance among government entities to engage in arbitration proceedings. This increased reluctance is visible at both the cen - tre and state levels. To understand the background behind this reluctance, it is imperative to read the decision of the Supreme Court in DMRC v DAMEPL , wherein the Court set aside a INR3,000 crore arbitral award in favour of the DMRC due to disputes regard - ing the pubic-private partnership. This landmark rul - ing was followed by a notification from the Ministry
of Finance, discouraging arbitration as the preferred dispute resolution mechanism in public procurement contracts. This discouragement at the central level has recently been solidified at the state level by the Delhi govern - ment. In June 2025, the Delhi Public Works Depart - ment released a notification removing arbitration from the dispute resolution scheme in all future con - tracts, and shifting jurisdiction to Delhi courts. It is also important to note that the notification does not provide any rationale or reasoning for this decision. However, it is likely that this decision forms a part of the larger trend of reluctance towards arbitration involving public sector entities. In addition to this dualistic trend, the government has released the Draft Arbitration and Conciliation (Amendment) Bill, 2024, aimed at resolving long-held ambiguities within the framework of the Arbitration and Conciliation Act, 1996 and introducing several novel structural changes to improve the efficacy of arbitration as the preferred mode of dispute reso - lution. A significant proposal is the constitution of appellate arbitral tribunals and the integration of party autonomy to decide between the court and appellate arbitral tribunal for hearing cases under Section 34 of the Act. This proposal coincides with the decision by the Arbitration Bar to introduce task forces to identify and address critical gaps in the arbitral ecosystem. Taken together, these developments align with broader institutional and legislative reforms aimed at fostering time-bound dispute resolution and minimising court interference, helping institutional arbitration gain trac - tion across India’s legal and commercial landscape. Key developments Arbitration and Conciliation (Amendment) Bill The government of India released the Draft Arbitration and Conciliation (Amendment) Bill, 2024, proposing significant structural and procedural reforms to the Arbitration and Conciliation Act, 1996. The draft seeks to carve out conciliation into separate legislation and rename the existing Act as the “Arbitration Act”, to align with international standards. The key amend - ments are as follows:
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