GENERAL25 Sept 2026
Govt not planning major changes to dispute resolution with foreign firms
India is not planning major changes to how disputes with foreign companies are settled. Foreign firms have long complained that resolving disputes here is slow and hard. The rule requiring local courts to hear a dispute for five years before international arbitration stays. That period may be cut, possibly to two years. Taxation disputes stay outside investment treaties.
Key Statutory Highlights
- India will keep the requirement that disputes involving foreign companies must first be heard in local courts before international arbitration is allowed.
- The five-year waiting period may be shortened, possibly to two years, according to a second government source.
- Taxation disputes will stay outside the scope of investment treaties, which one source called a red line for India.
Actionable Advice for Taxpayers / Founders:If you are a foreign investor, or advise one, review how your investment treaty or contract handles disputes and check the current position with a legal advisor before counting on arbitration timelines, since these changes are still under review and not final.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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