On Friday, Chief Justice of India D Y Chandrachud emphasized the necessity for India to assume a leading role in the global arbitration landscape, advocating for the development of a robust international arbitration culture. He addressed these remarks at a conference focusing on international arbitration and the rule of law.
Chief Justice Chandrachud outlined the critical role of the rule of law in ensuring economic stability and growth, noting that it fosters fairness, stability, and predictability—all essential for economic prosperity. “Respect for the rule of law not only underpins fair play but also cultivates an environment ripe for economic development, attracting investors and enhancing global competitiveness,” he stated.
The Chief Justice highlighted the predicted economic growth for India, citing forecasts by the International Monetary Fund (IMF) and the World Bank, which project a robust 7 percent GDP growth in 2024-25. This growth positions India at a competitive advantage internationally, further bolstered by significant foreign direct investment inflows.
Justice Chandrachud stressed the importance of creating a level playing field in dispute resolution that extends beyond domestic courts to international forums. “By strengthening institutional frameworks, India can become a beacon for arbitration in the Global South, offering a reliable, fair, and efficient mechanism for resolving commercial disputes,” he explained.
On the legislative front, efforts are underway to overhaul the Arbitration and Conciliation Act of 1996. “A committee established by the Ministry of Law and Justice to review the Act’s effectiveness has already submitted its recommendations, setting the stage for substantial legislative reforms,” said the Chief Justice.
He also addressed past apprehensions regarding investor-state arbitration, pointing out that the increasing professionalization of arbitration in India has significantly altered the landscape. “We are now equipped with the expertise to navigate complex disputes between states and between investors and states,” he asserted.
The Chief Justice further mentioned that the judiciary is adapting to the evolving needs of arbitration, with recent appointments to the high courts including members with extensive experience in arbitration.
The conference also featured remarks from Supreme Court judge Justice Sanjiv Khanna and Attorney General R Venkataramani, among others. Justice Khanna reiterated the significance of arbitration as a preferred method for resolving commercial and international disputes, aligning with global trends towards enhancing contract enforcement and business operations within India.
