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May 29, 2026

India's Evolving Dispute Resolution Landscape

Sanskar Saraf•Friday, 29 May 2026

India's Evolving Dispute Resolution Landscape

India's commercial dispute resolution landscape has undergone significant transformations in recent years, with a growing emphasis on arbitration and mediation as alternatives to traditional court proceedings. The establishment of commercial courts and the India International Arbitration Centre in 2019 marked a significant milestone in this journey. According to a study on commercial dispute resolution in India, commercial courts were created under the federal Commercial Courts Act, 2015, with the objective of bringing faster resolution to commercial and contractual dispute litigation. The typical process involves a plaintiff filing a case, which is then assigned to a judge, and the judge summons the plaintiff and defendants for a mediation hearing. If mediation is successful, the case is resolved, and this approach has been instrumental in reducing the backlog of cases in Indian courts.

The Indian government has been actively working to promote arbitration and mediation as effective means of commercial dispute resolution. The Commercial Courts Act, 2015 was amended in 2018 to introduce the Pre-Institution Mediation and Settlement (PIMS) mechanism, which requires parties to exhaust the mandatory remedy of PIMS before approaching the court for commercial disputes of a specified value. This mechanism aims to provide an opportunity for parties to resolve commercial disputes through mediation, reducing the burden on the courts and promoting faster dispute resolution. Furthermore, the 2024 Guidelines for Arbitration and Mediation have been introduced to further streamline and promote arbitration in India. These guidelines recommend reducing court intervention and promoting institutional arbitration, which is expected to enhance the efficiency and effectiveness of commercial dispute resolution in India. For more information on India's evolving corporate landscape, readers can refer to our previous articles on India's Corporate Law Reforms: Navigating the 2026 Amendment Bill and India's Evolving Corporate Governance Landscape.

The recent amendments and regulatory changes in India's commercial dispute resolution landscape are expected to have a significant impact on corporate compliance. With the increasing emphasis on arbitration and mediation, companies will need to adapt their dispute resolution strategies to take advantage of these alternative mechanisms. As noted in an article on India's Regulatory Reform Guide, India's regulatory reforms are contributing to a stronger and more globally aligned compliance environment. Companies will need to ensure that they have the necessary infrastructure and expertise in place to navigate these changes and comply with the new regulations. This may involve investing in training and development programs for their legal and compliance teams, as well as reviewing and updating their dispute resolution policies and procedures. For more information on navigating India's evolving corporate landscape, readers can refer to our previous articles on Navigating India's Evolving Corporate Landscape and India's Evolving Arbitration Landscape: Navigating Regulatory Changes.

The Indian government's efforts to promote arbitration and mediation as effective means of commercial dispute resolution are also reflected in the establishment of institutions such as the India International Arbitration Centre. As noted in an article on The Way Forward: An Analysis of India’s New Guidelines for Arbitration and Mediation in Contracts of Domestic Public Procurement, making India the hub for international arbitration was one of the “pioneering initiatives” of Prime Minister Narendra Modi’s administration. The Union Cabinet chaired by Prime Minister Modi passed the New Delhi International Arbitration Centre (NDIAC) Bill in 2019 to set up an autonomous body for institutional arbitration. This move is expected to enhance India's reputation as a hub for international arbitration and promote the use of arbitration and mediation in commercial dispute resolution.

In addition to the establishment of institutions such as the India International Arbitration Centre, the Indian government has also introduced various guidelines and regulations to promote arbitration and mediation. For example, the 2024 Guidelines for Arbitration and Mediation have been introduced to further streamline and promote arbitration in India. These guidelines recommend reducing court intervention and promoting institutional arbitration, which is expected to enhance the efficiency and effectiveness of commercial dispute resolution in India. Furthermore, the Indian Ministry of Law & Justice constituted an Expert Committee to examine the working of arbitration law in India and recommend reforms to the Act. The Committee issued its Report in February 2024, which recommended several changes to the Act, including reducing court intervention and promoting institutional arbitration.

The implications of recent regulatory changes on corporate compliance in India are significant. Companies will need to ensure that they have the necessary infrastructure and expertise in place to navigate these changes and comply with the new regulations. As noted in an article on The Asia-Pacific Arbitration Review 2026, the Supreme Court of India is paving the way for India’s longstanding ambition to emerge as a global arbitration destination. This move is expected to enhance India's reputation as a hub for international arbitration and promote the use of arbitration and mediation in commercial dispute resolution. Companies will need to stay up-to-date with the latest developments and regulations in this area to ensure that they are well-positioned to take advantage of these changes and comply with the new regulations.

To navigate these changes, companies can take several steps. Firstly, they should review and update their dispute resolution policies and procedures to ensure that they are aligned with the new regulations. Secondly, they should invest in training and development programs for their legal and compliance teams to ensure that they have the necessary expertise and knowledge to navigate the new regulatory landscape. Thirdly, they should consider seeking external advice from experts in arbitration and mediation to ensure that they are taking a proactive and strategic approach to dispute resolution. By taking these steps, companies can ensure that they are well-positioned to take advantage of the opportunities presented by India's evolving dispute resolution landscape and minimize the risks associated with non-compliance.

In terms of practical guidance, companies should consider the following key takeaways:

By following these key takeaways, companies can ensure that they are well-positioned to navigate India's evolving dispute resolution landscape and minimize the risks associated with non-compliance.

The Indian government's efforts to promote arbitration and mediation as effective means of commercial dispute resolution are expected to have a significant impact on the Indian economy. By reducing the burden on the courts and promoting faster dispute resolution, the government aims to create a more business-friendly environment that is conducive to investment and growth. As noted in an article on India's Regulatory Reform Guide, India's regulatory reforms are contributing to a stronger and more globally aligned compliance environment. This is expected to enhance India's reputation as a hub for international business and promote the use of arbitration and mediation in commercial dispute resolution.

In conclusion, India's evolving dispute resolution landscape presents both opportunities and challenges for companies operating in India. By understanding the recent regulatory changes and taking a proactive and strategic approach to dispute resolution, companies can minimize the risks associated with non-com