International Arbitration Centre At GIFT City: A Varied Approach?

A. Introduction

• With the development of Gujarat International Finance Tec-City ('GIFT City'), India has its first International Financial Services Centre ('GIFT – IFSC'). The GIFT – IFSC aims at providing services related to capital markets, insurance, banking asset management, alternative investment funds, aircraft and ship leasing, and ancillary services. However, for IFSC to be an attractive destination for providing financial product i.e., a bundle of contractual rights and obligations, there needs to be a robust mechanism to ensure contract enforcement viz. resolution of disputes arising from the associated contract in a swift, fair and professional manner. To further this objective, a proposal was made in the Union Budget of 2022-23 to set up an International Arbitration Centre ('IAC') in the GIFT City for timely settlement of disputes under international jurisdiction.