International Arbitration on the Rise in India

India has seen a rapid uptake in international arbitration, driven by the growing recognition of arbitration as a preferred dispute resolution method for commercial contracts and the increasing sophistication of its businesses.

Key developments that should be on the radar of anyone interested in arbitration in the Asia-Pacific:

• Indian parties are the top international users of arbitration seated in Singapore

• Now institutions are driving forward arbitration in major Indian cities

• Increase in cross-border cases involving Indian parties as Indian business venture abroad

The Supreme Court of India has delivered significant judgments on arbitration cases, confirming the existence of a pro-arbitration supporting ecosystem. These rulings encourage parties to take advantage of arbitration for speedier dispute resolution.

Unique features of the Indian arbitration landscape, such as the requirement to pay stamp duty and the group of companies doctrine, have also been clarified, making them more easily understood and applied in India-related arbitrations.

A broader range of practices are being considered by the Indian courts. The Delhi High Court ruled that a third-party funder cannot be liable for adverse costs in an arbitration if the funding agreement does not provide for such an obligation. This judgment brings greater certainty to funders of arbitrations in India, promoting investment in the sector.

India's growing prominence in international arbitration is a testament to the country's efforts to create a robust and efficient dispute resolution framework. As India continues to attract foreign investment, the upward trend in international arbitration is expected to persist.

If you would like to know more about these developments, I go a little more into the details in this article: https://www.pinsentmasons.com/out-law/analysis/international-arbitration-uptake-rising-rapidly-in-india