Developing India as a Hub of International Arbitration: A Misplaced Dream?

Over the past few years, several ministers and Government representatives have expressed the desire to make India a hub of international arbitration and to improve India's position in the Ease of Doing Business rankings published by the World Bank The recent amendments to the Arbitration and Conciliation Act, 1996 have been regarded as a step towards these goals. Better rankings in the Ease of Doing Business Report and the choice of India as the seat of international arbitrations are signals of a strong legal system. However, these alone are not pointers to an efficient and an effective dispute resolution mechanism. The paper argues that the recent amendments to the 1996 Act are only baby steps towards a better legal system and suggests certain areas of reforms for a legal system which is efficient, effective, and most importantly, inexpensive.