At the recent ICDR Conference, Tushar Mehta, the Solicitor General of India, emphasized the importance of embracing diversity within arbitration to bolster India’s role in global commerce. He articulated that diversity enriches decision-making by infusing various expertise, experiences, and cultural insights into the arbitration process. Prioritizing gender and intergenerational diversity is essential for building credibility and trust, ultimately positioning India as a truly global player capable of managing complex cross-border disputes effectively and impartially.
Mehta traced India’s historical roots as a trading nation, connecting the East and the West. He highlighted the significant growth in trade, with exports soaring from USD 40.1 billion in 2000 to USD 458.3 billion by 2022, and imports following suit from USD 60.8 billion to USD 725.4 billion in the same timeframe. This economic expansion is credited to the collaborative efforts of the legislative, executive, and judiciary, reflecting a commitment to improving the business landscape, as evidenced by India’s rise in the World Bank’s Ease of Doing Business ranking from 142nd in 2014 to 63rd in 2019.
India’s strategic geographic location enhances its capacity to align with global markets, making it an ideal hub for international trade and dispute resolution. The last few decades have marked a significant shift toward arbitration as the preferred method for resolving conflicts, offering efficiency and flexibility that litigation often lacks. However, Mehta pointed out that the initial advantages of arbitration have begun to diminish over time. Conferences like this play a vital role in reminding stakeholders of the fundamental benefits of arbitration, ensuring the preservation of its core principles.
The trend towards institutional arbitration is encouraging, with a notable shift from ad-hoc methods, particularly among public sector undertakings. This movement is supported by a judiciary that advocates for minimal intervention and promotes arbitration, as illustrated by landmark rulings like Vidya Drolia v. Durga Trading. Furthermore, courts are increasingly recognizing the need for diversity in arbitrator appointments, expanding opportunities beyond retired judges to include younger legal professionals and domain experts, which enhances the overall efficiency and credibility of the arbitration process.
On the international stage, there is a growing trend of cross-border arbitration involving Indian and foreign entities, with parties favoring institutions that offer tailored solutions. The enforcement of foreign awards, as seen in cases like Avitel Post Studios Limited v. HPEIF Holdings 1 Limited, signals India’s commitment to aligning with global arbitration standards, boosting confidence among foreign investors and stakeholders in India’s jurisdiction for dispute resolution.
As India continues to establish itself as an economic powerhouse, the commitment to effective arbitration practices is critical. The presence of organizations like ICDR in India heralds a new era of structured timelines and enhanced flexibility, streamlining proceedings. However, to elevate arbitration standards, a diverse panel of arbitrators reflecting global perspectives is imperative. Mehta concluded with a timeless adage: “If you want to go fast, go alone; if you want to go far, go together.” By fostering collaboration within the Indian arbitration ecosystem and aligning with international institutions like ICDR, India can achieve remarkable advancements in arbitration and dispute resolution, paving the way for a promising future.
