Union Law Minister Arjun Ram Meghwal said the government is moving quickly to set up the Mediation Council and review Section 34 of the Arbitration Act to make India a global hub for arbitration and mediation.
New Delhi: The Union Government is taking strong steps to make India a global hub for arbitration and mediation. Union Law Minister Arjun Ram Meghwal said the government is fully committed to strengthening the country’s dispute resolution system and promoting India as an international centre for arbitration.
He said that the government is already working on forming a Mediation Council, while the Arbitration Council of India is still awaiting further action. Meghwal expressed optimism, saying that the plan for the arbitration council will move forward soon.
The Law Minister stated, “India will become the arbitration hub,” highlighting the government’s long-term vision to make India a trusted destination for resolving global disputes.
He further added,
“We are moving fast in that direction. (I) will give the good news soon.”
These developments come at a time when there is a proposal to amend Section 34 of the Arbitration and Conciliation Act, 1996, which deals with the setting aside of arbitral awards by courts.
The move follows a Supreme Court observation concerning the liability and role of company directors in arbitration-related matters. The issue has now been referred to a committee for a detailed review.
Speaking on the need to revisit the law, Meghwal remarked,
“Now, after all these days of contemplation, I feel time has come to revisit Section 34 of Arbitration and Conciliation Act, 1996. Do you also feel so? So, if you have suggestions please send it to us, my work will become easier.”
At a recent conference on arbitration and mediation, the Attorney General of India, R. Venkataramani, pointed out that the main reason behind the delay in setting up the Mediation Council of India is the shortage of human resources.
He explained that even though the Mediation Act was passed two years ago, the council has not been fully established due to the lack of adequate manpower and administrative framework.
The Mediation Council of India, once formed, will play a crucial role in regulating mediators and mediation service providers. It will be responsible for registering mediators, recognising mediation institutes, accrediting service providers, and identifying types of disputes suitable for mediation.
This step is expected to create a structured and credible system for mediation in India, bringing it on par with global standards.
The Council will also ensure professional standards for mediators, which will help increase public trust and reduce the burden on courts.
The government’s focus on both arbitration and mediation shows its commitment to making dispute resolution faster, cost-effective, and transparent.
Experts believe that India’s growing legal ecosystem, supported by legislative reforms and institutional frameworks, can position the country as a preferred destination for resolving cross-border commercial disputes.
While the mediation system is taking shape, the expected reforms in arbitration—particularly the changes to Section 34—are likely to limit unnecessary court interference in arbitration awards, giving more certainty and finality to the arbitration process.
Legal analysts point out that once both councils become fully functional, they will enhance investor confidence and make India’s legal environment more business-friendly.
For corporate entities, startups, and law professionals, these developments will be important in drafting future contracts that include updated dispute resolution clauses.
In short, the Union Government’s push for these reforms marks a significant step toward building India’s reputation as a reliable global dispute resolution hub.
The vision is clear—India aims to provide an efficient, modern, and professional framework where businesses can resolve disputes through arbitration and mediation instead of lengthy court battles.
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