In a significant development, Indian Council of Arbitration (ICA) and the Australia India Business Council (AIBC) have signed a Memorandum of Understanding (MoU) to leverage mutual interests and strengthen bilateral trade and commercial arbitration relations between India and Australia.
India and Australia have emerged as strong partners in trade and investment, with several key sectors presenting promising opportunities for growth. Areas such as renewable energy, technology, pharmaceuticals, mining, and infrastructure offer significant potential for collaboration. An effective arbitration framework underpins these sectors and investor confidence by ensuring that businesses have access to fair, transparent, and efficient dispute resolution mechanisms.
Mr. Arun Chawla, is the Director General of the Indian Council of Arbitration (ICA). Sharing his insights on the Australia-India Economic Cooperation and Trade Agreement (ECTA) he emphasised that while agreements are essential, they must be complemented by efficient and reliable dispute resolution systems to foster thriving trade relations and boost investor confidence bilaterally.
Mr. Chawla commended both India and Australia for their pro-arbitration stance, which has been a catalyst in promoting investment and trade.
Mr. Irfan Malik, AIBC National Associate Chair and President NSW, who led this engagement on behalf of AIBC, highlighted the crucial role of institutional arbitration in boosting investor confidence across the nations as a very significant enabler as we accelerate on our bilateral trade and investment engagements across Australia and India.
“Collaboration and effective dispute resolution mechanisms are essential for enhancing India Australia trade relations. The recent MoU signing between ICA and AIBC is a testament to this, and we look forward to fostering a stronger trade and investment partnership between our nations. We strongly believe that Institutional arbitration is a catalyst for promoting investment and trade,” added Mr Malik.
The timing is particularly relevant as India and Australia continue to deepen their trade and investment ties, with the Australia-India Comprehensive Economic Cooperation Agreement, or CECA, paving the way for a more prosperous economic partnership.
In the past few years, India has introduced several reforms to align its arbitration framework with international best practices. Significant amendments have been made to the Arbitration & Conciliation Act, along with the recent introduction of the Mediation Act. Together, these legislative changes aim to contribute to an efficient and transparent dispute resolution system.
For investors, these advancements mean fewer procedural delays and more predictability in outcomes—both of which are essential for building trust.
Deputy Consul General of India, Sydney, Nirav Sutaria said that the Government of India remains fully committed to creating a supportive environment for Australian investors and is determined to ensure that they feel secure, welcome, and valued.
“Whether it’s facilitating connections, addressing investor concerns, or providing critical resources, our goal is to make it easier for Australian investors to do business in India. Furthermore, we will be support & guidance from Indian arbitration institutions such as the Indian Council of Arbitration (ICA) to help a more structured approach to dispute resolution for foreign investors.”
“This proactive stance underscores our commitment to providing Indian Companies doing business in Australia & likewise Australian investments in India with a substantial & efficient institutional alternate dispute mechanism for addressing any potential issues they may encounter”.
Mr Sutaria also mentioned that India offers several unique advantages as an arbitration destination, including cost-effectiveness and an ever-growing pool of highly skilled arbitrators.
“By choosing India as a seat of arbitration, Australian businesses can enjoy the benefits of a streamlined process that minimizes excessive costs and procedural delays. India’s arbitration ecosystem is designed to meet international standards, and these advantages help reduce barriers for Australian businesses while ensuring that disputes are resolved fairly and expediently.”
He added that in recent years, India has been positioning itself as a dispute resolution hub in the Asia-Pacific region, as an attractive proposition for investors looking for an affordable and effective way to resolve disputes.
“To all Australian investors and businesses here today, I encourage you to take full advantage of the strengthened arbitration landscape in India. This is an opportune time to deepen your ties with India, confident in the knowledge that a robust and reliable dispute resolution framework is in place to safeguard your interest.”
