Arbitration Framework And Ease Of Doing Business In India
- IJLLR Journal
- Jul 27
- 2 min read
Ayushi Singh, University of Petroleum and Energy Studies, Dehradun, Uttarakhand
INTRODUCTION
In India, arbitration has become a vital way for resolving disputes as it opens an alternative route to the traditional court system that is often synonymous with delays and complex procedures. Built upon the solid foundation of the Arbitration and Conciliation Act, 1996, with latter amendments further strengthening the Act in 2015, 2019, and 2021, arbitration provides an avenue for the swift resolution of commercial disputes with assurance to the businesses and stakeholders involved. As a private and consensual process, it affords the parties an option to sidestep prolonged court proceedings, to appoint neutral arbitrators, and to obtain tailored binding decisions. In an emerging economy market with abundant commercial transactions, arbitration stands as a cornerstone of timely and effective justice, especially for cross-border and domestic business disputes.
Significance of Arbitration not only relates to dispute resolution but also serves another important function-the enhancement of India’s score in the Ease of Doing Business (EoDB) Index, a key indicator by the World Bank that measures the ability of economies to do business. A strong arbitration framework indicates to all investors, both domestic and foreign, that India provides a predictable, timebound, and enforceable mechanism for resolving commercial disputes. This gives a boost to investors’ confidence, improves contract enforcement, and reduces pressure on an already overstretched judiciary. As India strives to climb the EoDB rankings and establish itself as a global trade and investment hub, it becomes a linchpin in ensuring efficacious arbitration systems.
Furthermore, this research aims at evaluating the arbitration framework of India through those who live in its heart namely, arbitrators and advocates. From this examination of their experiences, including challenges faced and suggestions forwarded, a detailed evaluation is made of the strengths and weaknesses apparent within the current system in relation to the breadth of its direct impact on doing business. In particular, among such objectives were including review regarding the effectiveness of legislative amendments; persistence of obstacles such as interference by judiciary and delays in enforcement; and the scope of institutional arbitration towards streamlining the processes. Accordingly, this has meant bringing to employ a questionnaire survey as methodology with a sample size of 20 respondents, who have both been experienced arbitrators and advocates involved with India’s arbitration scene. Their inputs offer a pragmatic viewpoint on understanding the actual performance of the system and proposing concrete reforms.
