Over the past few years, India has been vocal about its ambition to become a global arbitration hub, as its economic dominance boasts an upward streak. Indeed, promoting arbitration—alongside championing economic growth—has been a key priority for the current administration. This is reflected in major amendments to the arbitration law of India and numerous government policies, aimed at boosting Indian arbitration.
The judiciary has also espoused the lofty cause and more often than not, struck the right balance in court intervention in arbitration. For instance, last year the Supreme Court of India dispelled the (un)popular market perception that two Indian parties contracting onshore cannot choose a foreign seat of arbitration [PASL Wind Solutions v. GE Power Conversion India (2021) 7 SCC 1]. The judgment also raises doubts whether Indian substantive law is mandatory for Indian parties arbitrating offshore. This landmark decision is likely to accelerate the trend of Indian parties arbitrating abroad and provide comfort to foreign investors contracting through onshore subsidiaries.