- 72% prefer institutional and hybrid dispute resolution mechanisms signalling an evolving ecosystem
- Enforcement remains a critical concern, with 38% identifying the lack of enforcement of arbitral awards as a key challenge
- 65% consider technology highly effective in improving arbitration proceedings, but skills, infrastructure and safeguards remain important barriers
- 51% believe AI can significantly improve arbitration efficiency when appropriate safeguards are in place
New Delhi, 11 September 2026: EY India, the leading professional services firm along with Aarna Law released a report titled ‘The Next Era of ADR: Trends, Challenges and Opportunities’. Based on a survey conducted with over 120 legal professionals, the report highlights that India's alternative dispute resolution (ADR) landscape is moving towards more structured, flexible and technology-enabled mechanisms. According to the survey, 72% of respondents prefer institutional (managed by an organization using established rules) and hybrid (combining two or more dispute resolution methods into one process) ADR mechanisms, which offer a clear process, administrative support and greater adaptability in resolving commercial disputes.
The findings suggest growing confidence in India’s arbitration ecosystem, with 77% of respondents optimistic about its future. Awareness of the country’s arbitration framework is also strong, with 52% reporting extreme familiarity with the Arbitration and Conciliation Act, 1996. This is important as greater awareness, coupled with continued investment in skills and institutional capacity, can help improve the quality, consistency and effectiveness of dispute resolution in India.
Speaking on the report, Yogen Vaidya, Partner, EY Forensic & Integrity Services said, “India's dispute resolution ecosystem is entering a decisive phase, with businesses increasingly seeking mechanisms that combine flexibility with procedural certainty and institutional support. The strong preference for institutional and hybrid models, together with optimism about the future of arbitration, is encouraging. The next priority must be to translate reforms into a consistent user experience through stronger institutions, effective enforcement, specialised expertise and disciplined case management.”
Institutional capability and enforcement remain central
More than half of the respondents, 52% identified standardisation and institutional support as the most significant benefit of institutional arbitration. 42% respondents placed importance on experienced case managers, 26% focused on clear communication, and 21% laid emphasis on the efficient resolution of disputes. This shows that legal professionals are looking not just for legal expertise, but also for strong administration and smooth case management that can make dispute resolution more predictable and effective.
For 38% of respondents enforcement of arbitral awards, and for 28% of respondents judicial intervention remain key concerns. These issues matter because businesses rely on arbitration to deliver timely and enforceable outcomes. Addressing them would be essential to strengthening confidence in India as a dispute resolution destination.
Shreyas Jayasimha, Founder, Aarna Law said, “The survey reflects a maturing arbitration market in which users are looking beyond the availability of legal remedies to the quality and reliability of outcomes. For India to strengthen its position as an international dispute resolution destination, legal reform must be supported by predictable enforcement, capable institutions and professionals with deep sectoral expertise. A balanced and arbitration-supportive approach from all stakeholders will be essential to building lasting confidence.”
Technology is reshaping arbitration
Technology adoption is emerging as an important enabler of modern arbitration, with 65% of the respondents considering it highly effective in improving proceedings. Video conferencing was identified as the most beneficial technology by 49%, while 37% said technology improves efficiency by reducing hearing time.
The survey also indicates cautious optimism around artificial intelligence (AI). 51% believe AI can significantly improve arbitration efficiency when appropriate safeguards are in place.
Cost and efficiency continue to shape user experience. Hearings were identified as the most cost-intensive phase of arbitration by 43% of respondents, closely followed by discovery and evidence gathering at 41%. At the same time, 73% reported adopting shorter procedural timelines to address delays.
India's opportunity lies in building an integrated ADR ecosystem that combines credible institutions, enforceable outcomes, professional expertise and responsible technology adoption. Arbitration is expected to remain central to complex commercial disputes, while mediation and hybrid mechanisms are likely to gain wider acceptance.