IFSCA to Set Up Independent Arbitration Centre in GIFT City

What was decided

The International Financial Services Centres Authority (Ifsca) plans to set up an independent arbitration centre in GIFT City to improve the ease of doing business and strengthen dispute resolution in India's flagship global financial services hub, according to a government official. As of the report date, this is a plan under consideration rather than a finalised notification. A government official said the proposal is currently under the government's consideration, describing it as the biggest reform Ifsca is working on and a key requirement for GIFT City's success as an international financial centre.

The official also said an expert committee has already been constituted to look into the matter and that the government is actively pursuing the creation of the centre.

Why now: the competitive gap

Narendra Kumar Bharindwal, president of the Insurance Brokers Association of India (IBAI), pointed out that compared with the Dubai International Financial Centre (DIFC) and Singapore, GIFT City has no independent arbitration centre. He said the move is likely an attempt to position GIFT City as a competitive rival to major global financial hubs such as Dubai and Hong Kong, and that such an institution will be crucial for GIFT City's success as an international financial hub.

The proposed centre aims to strengthen dispute resolution, enhance investor confidence and help position GIFT City as a leading international financial services hub.

Background: how the proposal got here

The idea did not originate in July 2026 — it traces back several years through a formal Budget announcement and an expert committee process. On July 16, 2024, the Expert Committee on drafting institutional arbitral rules for the International Arbitration Centre at GIFT IFSC submitted its report to the Chairperson of IFSCA, following the Finance Minister's 2022-23 Budget announcement to create an International Arbitration Centre in GIFT City for timely dispute resolution under international jurisprudence.

The Committee, chaired by Dr. M. S. Sahoo, reviewed frameworks of prominent arbitration centres such as SIAC, SICC, HKIAC, LCIA, and DIAC over seven meetings, and consulted international dispute resolution professionals. Its key recommendations include adopting global best practices such as technology use and third-party funding, allowing foreign lawyers' representation, and setting up a dedicated judicial framework for IFSC.

The Committee's original brief broadened along the way. While the Union Budget originally called for an International Arbitration Centre for GIFT City, the Expert Committee envisioned something broader: the Alternative Dispute Resolution Centre (ADRC).

Proposed operating model

The design blueprint follows established international arbitration institutions rather than a government department. As a Section 8 Company (not-for-profit), similar to SIAC (Singapore) and LCIA (London), the ADRC is intended to be wholly independent, not government-controlled. Governance is envisioned as a four-tiered administrative structure consisting of a Board of Directors, an International Advisory Council, the Executive Council, and a Secretariat.

Supporting legal changes were also mapped out by the committee. These include new provisions under the Arbitration and Conciliation Act, 1996 for IFSC-seated arbitrations (lower timelines, wider party autonomy, flexibility on procedural and substantive law, streamlined court support), tailored Mediation Act, 2023 rules for IFSC mediation using internationally qualified mediators, and a carve-out of GIFT IFSC dispute resolution from domestic SEZ Act, 2005 processes.

Practical effect for GIFT City

If implemented, the centre would fill a gap that market participants have flagged as a barrier to GIFT City competing with established hubs. For an IFSC to be an attractive destination for financial products, there needs to be a robust mechanism to ensure contract enforcement — i.e., resolution of disputes arising from associated contracts in a swift, fair and professional manner.

The scale of the opportunity has been estimated in the committee's own analysis. The opportunity to create a global standard dispute resolution centre is based on the IFSCA Committee's estimated global market for alternative dispute resolution of US$14.50 billion.

This sits against GIFT City's existing scale as India's sole operational IFSC. As the only operational IFSC in India, GIFT City's banking institutions held US$62.45 billion in assets and transacted US$89.54 billion in business as of June 2024, while between April and June 2024, US$98.86 billion in capital markets transactions were executed on its exchanges and 137 aviation assets were leased.