The credibility of India’s dispute resolution mechanisms will play a decisive role in shaping investor sentiment, Chief Justice of India Surya Kant said, underlining the growing importance of legal certainty in a globalised economy.

“Globalization ultimately depends not only upon the movement of capital, but upon the stability of expectations. Arbitration provides that stability. It reassures investors, supports commercial partnerships, and ensures that disagreement does not become disruption,” he said.

Speaking at the ICA international conference in New Delhi, he added, “The credibility of India’s dispute resolution mechanisms will increasingly influence how investors assess the country as a reliable destination for sustained investment.”

Push for institutional arbitration

Making a case for structural reform, the CJI called for wider adoption of institutional arbitration. “Institutional arbitration in India must continue to expand its reach, strengthen professional capacity, and deepen engagement with global best practices,” he said.

“Encouraging parties, particularly public sector bodies and large commercial entities, to adopt institutional rules more frequently, will play an important role in this transition,” he added.

He further noted, “Institutional arbitration can contribute significantly to the development of specialised arbitration capacity—both at the Bar and within arbitral panels,” stressing the need to scale such capabilities nationwide.

Right ambience for commerce

At the same event, Delhi Lieutenant Governor Taranjit Singh Sandhu said, “Strengthening arbitration aligns with the need for a predictable and rules-based environment for commerce,” while cautioning that “the development of Delhi as a global arbitration hub is not merely a matter of infrastructure, but of institutional alignment and sustained policy support.”

Industry voices highlighted India’s cost advantage and legal talent pool. “India is one of the safest harbours to do business in the world today. The time has come that we must promote institutional arbitration,” said N.G. Khaitan.

“India provides and offers the cheapest institutional arbitration in the world… We have 2 million lawyers and 70,000 lawyers graduate every year,” he added.

Amid shifting global dynamics, arbitration is gaining prominence. “As global commerce becomes more interconnected… arbitration and mediation have emerged as a cornerstone of investor safety,” said Arun Chawla, adding that trust and rule-based systems will define the next phase of globalisation.