India Keeps Local Courts For Foreign Firm Disputes

Business Standard · stocks

India is not planning major changes to its dispute resolution process for foreign businesses, according to government sources. While foreign companies have complained about lengthy and difficult processes, the requirement for disputes to be heard in local courts for a period before international arbitration will be retained. However, the five-year waiting period might be reduced to two years. Taxation disputes will remain outside investment treaty scopes, as India maintains its sovereign right to tax.