How is the Government Promoting Institutional Arbitration in Tier II and Tier III Cities?
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Synopsis
Discover how the Indian government is working to promote institutional arbitration in smaller cities. With initiatives like the Mediation Act and dedicated conferences, the aim is to create a robust framework for dispute resolution that instills confidence among businesses and communities.
Key Takeaways
- Promotion of Institutional Arbitration in smaller cities.
- Introduction of the Mediation Act, 2023.
- Establishment of the Mediation Council of India.
- Financial allocations for enhancing arbitration infrastructure.
- Creation of the India International Arbitration Centre.
New Delhi, Aug 1 (NationPress) The government has set its sights on fostering institutional arbitration for resolving disputes in Tier II and Tier III cities, aiming to establish a robust framework to facilitate this initiative, as stated in the Lok Sabha on Friday.
The Minister of State (Independent Charge) for Law and Justice, Arjun Ram Meghwal, provided insights in a written response, highlighting the government's commitment to enhancing the acceptance of institutional arbitration even in smaller urban areas. To further this goal, a conference titled ‘Institutional Arbitration: An Effective Framework for Dispute Resolution’ was held in June.
Detailing the measures implemented to fortify the arbitration and mediation landscape, Meghwal noted, “A national-level Mediation Conference was convened by the Attorney General for India in collaboration with the Department of Legal Affairs and the India International Arbitration Centre in May at Bharat Mandapam.”
The objective of this conference was to advocate for mediation as a primary mechanism for resolving disputes and conflicts throughout the nation, he added.
Meghwal further stated that the Mediation Act, 2023, has been passed to enhance mediation practices, particularly institutional mediation, in India. Section 31 of the Act mandates the formation of the Mediation Council of India, which will serve as a national authority to promote mediation as the preferred dispute resolution method and recognize mediation service providers across the country.
He also mentioned that the India International Arbitration Centre Act, 2019 was enacted to establish the India International Arbitration Centre (IIAC), aimed at creating an independent, autonomous, and world-class entity to facilitate institutional arbitration.
This centre has been designated as an institution of national significance, he added.
In terms of financial allocations, the MoS shared data regarding the budget and actual spending over the past five years for enhancing arbitration and mediation infrastructure, including capacity building, panel development, and technology integration. “A budget allocation of Rs 3.56 crore has been earmarked for IIAC in 2025-26,” he stated.
In the fiscal year 2024-25, spending on arbitration and mediation infrastructure reached Rs 3.75 crore; in 2023-24, it was Rs 3 crore, and Rs 15 lakh was reported for 2022-23, according to the MoS.
The Centre's objective is to instill confidence among parties by offering a dispute resolution platform for commercial disputes through arbitration, Meghwal explained.
The vision for the Centre is to transform it into a model arbitral institution within the country, thereby improving the overall quality of the institutional arbitration framework.
“Aside from the India International Arbitration Centre, no other arbitration or mediation centres have been established by the Central government,” he noted in his response.
Point of View
It is imperative to recognize the government's proactive approach towards enhancing dispute resolution mechanisms in India. By focusing on Tier II and III cities, the government is democratizing access to justice, ensuring that smaller communities are not left behind in the legal advancements shaping our nation.
NationPress
09/09/2025
Frequently Asked Questions
What is the aim of the government's initiative in Tier II and III cities?
The government aims to promote institutional arbitration and create an effective framework for dispute resolution in Tier II and III cities.
What is the significance of the Mediation Act, 2023?
The Mediation Act, 2023, is designed to promote mediation as a preferred mode of dispute resolution and establishes the Mediation Council of India.
What financial allocations have been made for arbitration infrastructure?
A budget allocation of Rs 3.56 crore has been made for the India International Arbitration Centre in 2025-26, with previous years showing increasing expenditures.
What role does the India International Arbitration Centre play?
The India International Arbitration Centre serves as an independent, autonomous body facilitating institutional arbitration in India.
How does the government plan to instill confidence in dispute resolution?
The government aims to provide a reliable platform for resolving commercial disputes through arbitration, fostering trust among parties.
