Justice Surya Kant bats for making India an arbitration hub by offering cost effective services

India must position itself as a global arbitration hub by leveraging its vast resources and providing cost-effective solutions, Supreme Court Judge Justice Surya Kant opined. He emphasised that India's growing interest in arbitration, coupled with its strategic advantages, makes it an ideal candidate for international arbitration..“The key to positioning India as a preferred choice of arbitration lies in marketing it as a premium arbitration hub. So, what can we offer? Time and cost are principal sensitivities of the international arbitration market. Arbitration, whether domestic or international, still demands high costs. With a vast pool of lawyers specialized in arbitration, India can provide cost-effective arbitration. India can offer a reliable but low-cost arbitration option. Our attempt must be to maximise value for litigants,” Justice Surya Kant stated..The apex court Judge was delivering the valedictory address at the colloquium on "International Arbitration: Indian Perspective," organised by India International Arbitration Centre (IIAC). .He also highlighted India’s strategic advantages. “India has a natural advantage for arbitration. India is positioned at the crossroads of major global trade routes, connecting Australia with Europe and Africa with Asia. Despite all this, we must ask ourselves why we miss the mark. Simply put, we are failing to market a thriving product.”.A critical reform, according to Justice Surya Kant, is simplifying procedural frameworks. “The judicial process to enforce arbitral awards should be streamlined,” he asserted. He also called for a centralized institution to oversee arbitration. “I also believe that an umbrella institution could be helpful for arbitration. India’s multitude of platforms creates complexity and confusion. I urge all of you to actively build and promote India as a hub for international arbitration.”.Justice Vibhu Bakhru provided historical context, noting that India’s arbitration framework evolved significantly after liberalisation. “The Indian perspective of commercial arbitration is different from that of other arbitrations. In 1991, India adopted liberalization and opened its markets. It was thus felt that the 1940 law was outdated and needed reform. The 1996 enactment drew clear distinctions between Indian and foreign arbitrations. ”He also pointed out the benefits of institutional arbitration. “The advantage of institutional arbitration is well known. The significance of institutional arbitration comes from the selection and recruitment of arbitrators. In a normal case, the arbitral institutions appoint the arbitrators, therefore the credibility cannot be questioned.”.Comparing the number of arbitration disputes initiated in foreign, Justice Bakhru noted that while a few hundred cases are initiated in institutions like ICC and SIAC, there were over 2,000 cases instituted in Delhi International Arbitration Centre (DIAC) alone in 2024. He said "DIAC is just one institution. We have barely scratched the surface of arbitration. Several arbitral institutions have come up to handle low-value arbitration. For high-value arbitration, the next step is for institutions to upgrade the infrastructure.”Certain areas, such as third-party funding, require further attention, Justice Bakhru noted. “It is necessary to recognise third-party funding as a means to access arbitration. However, it must be regulated.” Additionally, he flagged the issue of cost awards. “The cost awarded is lower in India compared to international standards.”With a growing arbitration ecosystem and increasing global recognition, India is fast emerging as a credible arbitration jurisdiction. “India is now fast emerging as an arbitration jurisdiction. It is a viable dispute resolution mechanism not just for large disputes,” Justice Bakhru concluded..Justice Tejas Karia echoed these sentiments, emphasising the role of institutions like the India International Arbitration Centre (IIAC). “Institutions like IIAC, with their cutting-edge rules and infrastructure, are going to be a testament to India’s arbitration journey. When we see surveys on preferred arbitration cities, we don’t see any Indian cities. However, we are much ahead from where we started. The idea is to reduce time and cost with technology," he said. .Dr. Rajiv Mani, Legislative Department, Ministry of Law and Justice and Law Secretary, Department of Legal Affairs, Ministry of Law and Justice also participated in the valedictory function. He said "We cannot achieve success at an international level unless we have credible institutions in the country. There were already a few centres, many of them, saving for DIAC were not performing satisfactorily. The intention behind IIAC was to bring culture of ADR percolate down to tier 2 and 3 cities as well.".In the inaugural session, Vice President of India Jagdeep Dhankar remarked that India's fast paced growth may have made it one of the most aspirational nations in the world but it has not been accompanied by development of the arbitration sector.