The Union Law Ministry has disclosed that the Central government has allocated ₹7.5 crore over the past three years to the India International Arbitration Centre (IIAC) to strengthen and promote institutional arbitration in the country.
According to the ministry, ₹2.25 crore was allocated in 2022-23, ₹3 crore in 2023-24, and ₹2.25 crore (till date) for 2024-25. This information was provided by Minister of State for Law and Justice Arjun Ram Meghwal in response to parliamentary questions raised in the Rajya Sabha by Aam Aadmi Party MP Sanjeev Arora.
In his response, Meghwal highlighted various policy and legislative reforms undertaken by the government to build a robust arbitration ecosystem. However, he also stated that the government does not maintain centralized data on arbitration cases handled under the Arbitration and Conciliation Act, 1996.
To enhance institutional arbitration in key hubs such as Delhi, Mumbai, and Bengaluru, the government has introduced amendments to the Arbitration and Conciliation Act in 2015 and 2019. Additionally, the enactment of the India International Arbitration Centre Act, 2019, led to the establishment of the IIAC, providing a neutral and independent platform for commercial dispute resolution.
While there has been no formal assessment of India’s global arbitration standing, the government continues to implement reforms aimed at bolstering India’s position in the global alternative dispute resolution landscape. These measures seek to enhance India’s competitiveness against international arbitration hubs like Singapore, London, and Hong Kong.
