In the last decade, India’s growth has outpaced several major economies, transforming it into a global economic powerhouse. The country has surpassed the United Kingdom to become the world’s fifth-largest economy and is poised to overtake Japan and Germany to secure the third spot. Additionally, India has overtaken China as the world’s most populous country. With increasing investments both domestically and internationally, the international business community expects reliable, efficient, and execution-friendly methods of dispute resolution. Against this backdrop, India is actively positioning itself as a leading hub for arbitration, aspiring to rival established centers like Singapore and London.
Singapore and London are globally renowned for their arbitration frameworks, and their success can be attributed to several factors. Singapore boasts a robust legal framework and solid infrastructure, aligning itself with the UNCITRAL Model Law while maintaining high international standards. Its constant updates to arbitration laws reflect global trends and best practices, giving it a competitive edge. Moreover, Singapore is known for its swift enforcement of interim measures, a critical factor for parties seeking effective dispute resolution. London, on the other hand, benefits from its strong foundation in the common law system, which influences one-third of the world’s jurisdictions. The UK is also undertaking targeted reforms to streamline arbitration laws, further strengthening its position as a preferred arbitration hub.
Both cities are home to world-class arbitration institutions, such as the Singapore International Arbitration Centre (SIAC) and the London Court of International Arbitration (LCIA). These institutions offer comprehensive rules, efficient systems, and resources to manage arbitration proceedings effectively. Geographically, Singapore’s location makes it a gateway to rapidly growing Asian economies, while London attracts parties from the USA, Europe, and Asia due to its central positioning. Both forums are also celebrated for their commitment to the integrity and neutrality of their arbitration systems.
The efficiency of arbitration proceedings and ease of execution are key factors contributing to the popularity of Singapore and London. At SIAC, the median duration for arbitration proceedings is 11.7 months, while at LCIA, it is 16 months. These centers uphold respect for arbitration agreements, arbitrators’ authority, neutrality, and enforcement of awards. Their legal frameworks and judiciaries have earned global respect for maintaining minimal judicial intervention, fostering confidence among international parties.
India, too, has been making significant strides toward becoming a leading arbitration hub. Several factors support this ambition. First, India’s legal community is home to exceptional lawyers and law firms that are strengthening their dispute resolution practices, attracting global attention. Second, Indian courts have increasingly adopted a pro-arbitration stance, supporting the autonomy of arbitral proceedings. For instance, Indian courts have clarified the determination of the “seat” of arbitration when only a venue is mentioned and recognized the parties’ ability to choose foreign laws for their arbitration agreements. Legislative reforms have also bolstered India’s progress.
The 2019 and 2021 amendments to arbitration laws were designed to promote institutional arbitration. Initiatives like the New Delhi International Arbitration Centre (NDIAC) and institutions in Mumbai and Hyderabad aim to create an independent and autonomous regime for institutional arbitration. Additionally, India’s status as a common law jurisdiction enables it to draw upon jurisprudence from countries like the UK, further enhancing its appeal to global stakeholders. Despite this progress, India must address several challenges to establish itself as a global arbitration hub. One critical area is ensuring party autonomy, allowing parties the freedom to choose the governing law, arbitration forum, and procedural rules. While recent judgments, such as Dholi Spintex v. Louis Dreyfus and PASL Wind Solutions v. GE Power Conversion India, reflect positive trends, India must sustain and expand these developments.
Another challenge lies in strengthening domestic arbitration institutions. The Arbitration Council of India, established under the 2019 amendment, must play a pivotal role in appointing arbitrators, setting benchmarks, and harmonizing domestic practices with international standards. This will inspire confidence among international parties. Furthermore, access to high-quality, independent, and impartial arbitrators is essential. Including international arbitrators in the system could attract global disputes and enhance India’s reputation. Finally, India must focus on adopting best practices and fostering innovation to compete with jurisdictions like Singapore and London. The ability to enforce arbitral awards efficiently will significantly influence whether parties choose India as their arbitration forum. The experience of parties during the execution process will ultimately determine India’s success in becoming the arbitration hub it aspires to be.
By addressing these challenges and building on its current progress, India is well on its way to achieving its goal. With continued effort and adaptation to global standards, India has the potential not only to rival but also to surpass Singapore and London as a leading center for arbitration in the future.
About the Author: Tanya Prasad currently serves as the Chief Investment Officer at LegalPay, specializing in International Dispute Resolution. She earned her LL.M. degree from the prestigious Humboldt University in Berlin and brings over 8 years of experience in cross-border litigation and international arbitration in international trade, construction disputes, energy, banking and finance, and Investor-State disputes. Tanya’s extensive background in legal and risk management includes positions at esteemed firms like MRP Advisory and Karanjawala & Company, as well as roles at prestigious organizations such as PwC and Rajkotia Associates, where she honed her expertise in litigation and regulatory services. Her comprehensive skill set and dedication to excellence make her an invaluable asset to LegalPay.
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