India's hostility to international arbitration.
In the last year, India has joined South Africa, Russia and Indonesia in seeking to weaken or abrogate international arbitration clauses in investment treaties made with other countries. The Indian government’s move follows its first defeat before an international arbitration tribunal. However, it also reflects growing reluctance among maturing emerging markets to allow these tribunals’ procedures to infringe their sovereign rights.
Europe will be the first region to be affected by the change in India’s position on international arbitration.
India’s lethargic judicial system will deter some investors.
Private companies could include international arbitration protections in their ventures when government agencies are not involved.
