**Executive Summary:**
This document presents the Minister of Law and Justice's response to questions regarding the strengthening of arbitration and mediation infrastructure in India, as of August 1, 2025. It addresses the assessment of existing centers, the establishment of government-backed institutions, promotion of mediation in Tier II and III cities, budgetary allocations for infrastructure development, and proposals for regional hubs. Key actions include the establishment of the Mediation Council of India under the Mediation Act, 2023.
**Key Points / Main Content:**
* **Assessment of Arbitration and Mediation Centers:**
* No comprehensive assessment or mapping of arbitration and mediation centers has been undertaken by the Central Government.
* **Establishment of Government Arbitration and Mediation Centers:**
* The India International Arbitration Centre (IIAC) was established under the India International Arbitration Centre Act, 2019.
* IIAC aims to be a world-class body for institutional arbitration, enhancing the quality of the arbitration framework in India.
* No other arbitration or mediation center has been established by the Central Government apart from IIAC.
* **Promotion of Institutional Arbitration and Mediation:**
* The Mediation Act, 2023, promotes mediation, especially institutional mediation.
* Section 31 of the Act provides for the establishment of the Mediation Council of India to promote mediation and recognize mediation service providers.
* A national-level Mediation Conference was organized on May 3, 2025, to promote mediation.
* A Conference on Institutional Arbitration was organized on June 14, 2025, to promote the advantages of institutional arbitration, including in Tier II and Tier III cities.
* **Budgetary Allocation and Expenditure:**
* The Central Government regularly releases grants to the IIAC under the India International Arbitration Centre Act, 2019.
* Financial data (in thousands) for budgetary allocation and expenditure for IIAC:
* 2022-23: Budget - 30,000; Expenditure - 1,500
* 2023-24: Budget - 37,500; Expenditure - 30,000
* 2024-25: Budget - 45,000; Expenditure - 37,500
* 2025-26: Budget - 35,600
* **Establishment of Regional or Sector-Specific Hubs:**
* No proposal to establish regional or sector-specific arbitration and mediation hubs is currently under consideration.
* IIAC has framed and notified the India International Arbitration Centre Conduct of Micro and Small Enterprises Arbitration Regulations, 2024, for MSME-related arbitrations.
**Impact Analysis:**
* **India International Arbitration Centre (IIAC):**
* *Impact:* Receives regular grants from the Central Government and is responsible for developing a world-class institutional arbitration framework.
* *Action Required:* Continue to develop and implement strategies to enhance the quality of institutional arbitration and manage MSME arbitrations under the 2024 Regulations.
* **Mediation Council of India:**
* *Impact:* Responsible for promoting mediation and recognizing mediation service providers.
* *Action Required:* Establish the council and develop strategies for promoting mediation as a preferred mode of dispute resolution.
* **Businesses, particularly MSMEs:**
* *Impact:* MSMEs have access to specific arbitration regulations under IIAC.
* *Action Required:* Understand and utilize the India International Arbitration Centre Conduct of Micro and Small Enterprises Arbitration Regulations, 2024, for dispute resolution.
* **Government of India:**
* *Impact:* Accountable for promoting mediation and arbitration through policy and financial support.
* *Action Required:* Continue to monitor and support the development of arbitration and mediation infrastructure, including providing financial support to IIAC.
Key Entities Referenced
Mediation Act, 2023: An act enacted by the Government of India to promote mediation, especially institutional mediation, in the country.
India International Arbitration Centre (IIAC): An autonomous body established by the Government of India for facilitating institutional arbitration and declared as an institution of national importance.
India International Arbitration Centre Act, 2019: The Act of the Government of India that provides for the establishment of the India International Arbitration Centre.
Mediation Council of India: A national level body established under Section 31 of the Mediation Act, 2023 for promoting mediation and recognizing mediation service providers.
New Delhi, Delhi: The location of a national level Mediation Conference organized on 03.05.2025 at Bharat Mandapam.
MSMEs: Micro, Small and Medium Enterprises, a sector for which the India International Arbitration Centre has framed arbitration regulations.
SHRI ARJUN RAM MEGHWAL: Minister of State Independent Charge of the Ministry of Law and Justice; and Minister of State in the Ministry of Parliamentary Affairs
India International Arbitration Centre Conduct of Micro and Small Enterprises Arbitration Regulations, 2024: Regulations framed and notified by India International Arbitration Centre for the conduct of arbitrations related to MSMEs.
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.
****