INTERNATIONAL COMMERCIAL ARBITRATION IN INDIA: A CRITICAL COMPARATIVE STUDY OF JUDICIAL APPROACH AND GLOBAL STANDARDS

Due to the development of international trade and the presence of cross-border investment, the
necessity to have an appropriate and neutral channel to settle commercial disputes has gone up
tremendously. International commercial arbitration has become the most desirable method of
dispute resolution in this global economic set up because it is flexible, confidential, enforceable
and grants independence to parties. Arbitration is unlike the traditional court litigation because
it provides the businesses with a platform that is not restricted to national boundaries and legal
frameworks hence enhancing certainty and stability in the international dealings.
As an emerging country in the quest to be a major economic power in the world, India has
made significant legislative reform efforts to empower its arbitration system. The adoption of
the Arbitration and Conciliation Act, 1996, which is mostly modeled on the international
standards of the Model Law created by UNCITRAL, was a big step in streamlining the Indian
arbitration law to the globally recognised standards. Moreover, the New York Convention
represents another obligation of India that supports its desire to enforce cross-border dispute
resolution and foreign arbitral awards.
Nevertheless, despite the intention which is progressive in legislative reform, the success of
any arbitration regime is eventually determined in accordance with judicial decision and
implementation. The strategy followed by the Supreme Court of India and other High Courts
over the years has been overruling in the development of the arbitration scene in India. Some
judicial rulings have been accused of increasing the breadth of judicial intervention especially
when it comes to issues involving foreign-seated arbitrations and application of the public
policy. Simultaneously, the later judgments show a deliberate movement to the judicial
restraint and the increased respect to the arbitral autonomy.
This dissertation analyses the Indian legal practice of courts when it comes to international
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Volume 3 Issue 6 | April 2026
commercial arbitration critically and considers how well it is aligned to international arbitration
practices. The paper provides a significant insight into the major judicial trends as well as
examining areas where India has failed to align with international best practice through the
application of doctrinal and comparative analysis and analysing the attributes of the issue on
whether India can become a seat of choice in arbitration or not.
The study comes out with the conclusion that despite the modern legislative framework adopted
by India, judicial consistency and limited intervention is still necessitated to help instill investor
confidence and increase the credibility of India in international commercial arbitration arena.