This abstract examines the potential impact of India becoming a party to the International Centre for Settlement of Investment Disputes (ICSID) on the development of International Commercial Arbitration in the country. ICSID, established under the ICSID Convention, offers a framework for resolving investment disputes through arbitration. By joining ICSID, India could gain access to its dispute settlement mechanisms, which could have various implications for the development of international commercial arbitration within the country.
This analysis highlights several key points. Firstly, accession to ICSID could enhance investor confidence in India, as it would demonstrate the country's commitment to a fair and impartial dispute resolution mechanism. This increased investor confidence may attract more foreign direct investment, contributing to India's economic development.
Secondly, India's participation in ICSID would offer opportunities for Indian arbitrators and professionals to gain experience in investment arbitration. This exposure to international arbitration proceedings could enhance India's arbitration expertise.
However, challenges may arise as well, like joining ICSID may limit India's policy space to regulate investments in the public interest, as the ICSID Convention includes provisions that protect investor rights. Therefore, it is crucial for India to carefully assess and address any concerns to ensure the preservation of its domestic policies.
Lastly, it is important to note that while ICSID focuses on investment disputes, international commercial arbitration covers a broader range of disputes. Consequently, India's accession to ICSID primarily impacts investment arbitration and may not directly influence the development of international commercial arbitration within the country.