Parliament Question: Strengthening Arbitration and Mediation Infrastructure in India

GOVERNMENT OF INDIA MINISTRY OF LAW AND JUSTICE DEPARTMENT OF LEGAL AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 2217 TO BE ANSWERED ON FRIDAY, THE 01ST AUGUST, 2025 Strengthening Arbitration and Mediation Infrastructure in India

2217. Smt. Roopkumari Choudhary:

Will the Minister of LAW AND JUSTICE be pleased to state:

(a) whether the Central Government has undertaken any comprehensive assessment or mapping of arbitration and mediation centres across the country, including their operational status, caseload capacity and regional distribution, if so, the details thereof;

(b) the number and location of arbitration and mediation centres established by the Government, including those under institutions such as the India International Arbitration Centre (IIAC), SAMADHAN and other Government sponsored bodies;

(c) whether any steps have been taken to promote institutional arbitration and mediation in Tier-II and Tier-III cities under the Mediation Act, 2023 and related policy frameworks;

(d) the total budgetary allocation and actual expenditure in the last five years for the development of arbitration and mediation infrastructure, including capacity building, panel development and technology integration; and

(e) whether there is any proposal to establish regional or sector-specific arbitration and mediation hubs (e.g., for infrastructure, MSMEs or public procurement disputes) and if so, the details thereof? ANSWER MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF LAW AND JUSTICE; AND MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS (SHRI ARJUN RAM MEGHWAL)

(a) No such assessment or mapping has been undertaken by the Central Government.

(b) The Government of India has enacted the India International Arbitration Centre Act, 2019, to provide for the establishment of the India International Arbitration Centre for the purpose of creating an independent, autonomous and world class body for facilitating institutional arbitration and to declare the Centre to be an institution of national importance.

The Centre aims to inspire confidence amongst parties, by providing a dispute resolutionplatform for resolution of commercial disputes through arbitration. The Centre is envisaged to become a model arbitral institution in the country, thereby paving the way for enhancing the quality of institutional framework for arbitration. Apart from India International Arbitration Centre, no other arbitration or mediation centre has been established by the Central Government.

(c) The Mediation Act, 2023 has been enacted with a view to promote mediation, especially institutional mediation in the country. Section 31 of the Act provides for the establishment of Mediation Council of India as a national level body inter-alia for promoting mediation as a preferred mode of dispute resolution and for recognising mediation service providers in the country. Further, a national level Mediation Conference was organised by Ld. Attorney General for India in association with Department of Legal Affairs and India International Arbitration Centre on 03.05.2025 at Bharat Mandapam, New Delhi. The aim of the conference was to promote mediation as a primary mode of dispute and conflict resolution across the country.

Also, a Conference on Institutional Arbitration: An effective framework for Dispute Resolution was organised by the Government of India on 14.06.2025, with a view to promote the advantages of institutional arbitration including in Tier II and Tier III cities.

(d) In terms of Section 24 of the Indian International Arbitration Centre Act, 2019, the Central Government has been regularly releasing grants to the India International Arbitration Centre. The total budgetary allocation and actual expenditure for India International Arbitration

Centre is as under:

FINANCIAL YEAR BE/RE EXPENDITURE (Amount in thousands) (Amount in thousands) 2022-23 30000 1500 2023-24 37500 30000 2024-25 45000 37500 2025-26 35600 -

(e) No such proposal is under the consideration of the Government. However, India International Arbitration Centre has framed and notified the India International Arbitration Centre (Conduct of Micro and Small Enterprises Arbitration) Regulations, 2024, for the conduct of arbitrations related to MSME’s.

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