Arbitration fosters economic growth, says EAM Jaishankar at Arbitration Bar of India event

Addressing a gathering at Delhi's Bharat Mandapam on Saturday, Jaishankar said that arbitration is recognized as a cornerstone of modern dispute resolution.

"We all do know it as an efficient and equitable method of resolving disputes and providing a streamlined alternative for what can often be very intricate judicial processes. So whether it is in domestic or international arenas, arbitration certainly inspires confidence, it fosters economic growth, and it upholds the rule of law," the EAM said.

"In a world where time is actually of essence and certainty is of paramount importance, arbitration is recognized as a cornerstone of modern dispute resolution. Now, this is particularly relevant for us to recognize in India at a time when rapid economic growth is taking place in a globalized environment. If we are to get full mileage from our 3D dividend- democracy, demographics, and demand- then high-quality arbitration is a notable factor in further attracting foreign direct investment," he added.

Jaishankar highlighted the initiatives undertaken by the central government in facilitating the process in the country.

"To accelerate growth, the government has already streamlined interstate commerce with a Goods and Services Tax. It has fostered a unified national market. Moreover, digitally enabled delivery, and in different ways, is reforming the quality of governance. It is revolutionizing access to public goods. And we have seen a surge in the entrepreneurial spirit, which is aided by a startup culture and facilitated by the expansion of skills," Jaishankar said.

"Legal reforms including the insolvency and bankruptcy code and amendments to financial laws have also helped to ensure a stable and predictable and a more positive business environment. So strengthening dispute resolution mechanisms such as commercial courts and alternative dispute resolution is a natural corollary of these developments. They further enhance investor confidence and lighten the judicial burden," he said.

The EAM also emphasised the importance of arbitration in facilitating international trade and investment.

"Now, as Foreign Minister, let me also say that my ministry recognises the importance of arbitration in facilitating international trade and investment. And by providing a stable and predictable dispute resolution mechanism, we see it as fostering confidence in foreign investors," Jaishankar said.

Jaishankar in a post on X, also expressed happiness to be present at the launch of the Arbitration Bar of India.

"Glad to participate in the launch of the Arbitration Bar of India. 'Arbitrate in India!' should be a natural accompaniment of @makeinindia as our economy grows and the nation globalizes. The Modi Government recognizes the importance of high-quality arbitration as it improves the ease of doing business. #TeamMEA is doing its part. Confident that today's inauguration is one among the legal community's many contributions towards a Viksit Bharat," the EAM said in the post.