Introduction

India has long aspired to become a global arbitration hub. On 7 September 2025, Andhra Pradesh Chief Minister N. Chandrababu Naidu announced plans to set up a world-class international arbitration centre in Visakhapatnam, explicitly aiming to compete with Singapore, one of the world’s leading arbitration destinations. The declaration came during the International Mediation Conference in Visakhapatnam, with Naidu stressing arbitration’s role in bolstering investor confidence and economic growth.

Why Visakhapatnam?

Although arbitration in India is usually associated with Delhi and Mumbai, Visakhapatnam offers unique advantages:

• A strategic maritime metropolis with growing international trade links.

• Emerging as an IT and fintech hub.

• Strong institutional and political support.

• The Andhra Pradesh High Court has already trained 1,400 mediators, with another 800 in the pipeline, laying a foundation for a robust ADR (Alternative Dispute Resolution) ecosystem.

Learning from Singapore

Singapore’s success as a global arbitration centre rests on three pillars:

1. Institutional autonomy via the Singapore International Arbitration Centre (SIAC).

2. Judicial backing with minimal interference.

3. International trust in neutrality and enforceability.

For Visakhapatnam to succeed, it must not only provide infrastructure but also replicate these principles of consistency, neutrality, and credibility.

Sea and Sustainability Potentials

Visakhapatnam’s maritime identity offers a niche opportunity:

• It could specialize in maritime arbitration, a field historically dominated by London and Singapore.

• With the rise of ESG-linked disputes in green energy, climate compliance, and infrastructure, Vizag could position itself as India’s hub for sustainability-related arbitration.

Challenges Ahead

Several hurdles could impede progress:

• Governance and independence – political interference could undermine credibility.

• Talent pool – building arbitrators, counsel, and experts requires long-term investment.

• Enforcement and recognition – cross-border confidence in enforceability under Indian law is crucial.

• Global competition – Singapore, London, and Paris remain dominant, so Vizag must differentiate rather than imitate.

The Bigger Picture: Arbitration in India

India has taken steps toward strengthening arbitration:

• Establishment of the Mumbai Centre of International Arbitration (MCIA).

• Reforms via the Arbitration and Conciliation (Amendment) Acts.

Yet, systemic delays and the absence of a national arbitration strategy remain obstacles. If Andhra Pradesh ensures seriousness and independence, it could advance India’s ambition to become a world arbitration leader.

Conclusion

Visakhapatnam’s proposed arbitration centre is both symbolic and ambitious, signaling India’s determination to reassert itself in international dispute resolution. But ambition must be matched by:

• Institutional autonomy

• Sector specialization

• Judicial consistency

Only then can Visakhapatnam evolve into a credible competitor to Singapore instead of becoming another underutilized facility. Andhra Pradesh has taken the first decisive step—now the world will watch whether India can finally transform aspiration into reality.