India’s long-held ambition of becoming a global hub for arbitration has taken a new turn. On September 7, 2025, Andhra Pradesh Chief Minister N Chandrababu Naidu announced plans to establish a world-class international arbitration centre in Visakhapatnam, with the explicit goal of competing with Singapore.

The announcement came at the International Mediation Conference in Visakhapatnam, where Naidu described arbitration as essential for building investor confidence and fostering economic growth.

This bold move raises a pivotal question: can a new hub in Visakhapatnam realistically rival Singapore and position India as a preferred seat for international arbitration?

Visakhapatnam or Vizag is not the obvious choice. Unlike Delhi or Mumbai, it is not traditionally associated with arbitration. Yet, the city has strategic advantages. It is:

● A major port city, with growing international trade links.

● Emerging as an IT and fintech hub, making it attractive for cross-border commercial disputes.

● Political and institutional commitment, evidenced by the Andhra Pradesh government’s focus on mediation and arbitration capacity-building.

The Andhra Pradesh High Court has already trained 1,400 mediators, with plans to expand training to 800 more, laying the groundwork for an ADR ecosystem.

Singapore’s rise as a global arbitration hub was not accidental. It was built on:

● Institutional independence (Singapore International Arbitration Centre).

● Judicial support with minimal interference in awards.

● International recognition of enforceability and neutrality.

For Visakhapatnam, replicating these fundamentals will be crucial. Without judicial consistency, neutrality and global trust, infrastructure alone will not suffice.

Visakhapatnam’s unique advantage lies in maritime trade disputes. A port city with increasing shipping activity could become a hub for specialised maritime arbitration, an area often dominated by London and Singapore.

Moreover, with growing disputes around ESG-linked investments (green energy projects, climate compliance and infrastructure contracts), the Vizag Centre could brand itself as India’s hub for sustainability-focused arbitration - a niche yet globally relevant positioning.

1. Governance and Independence

• Without a transparent governance model, political interference could undermine credibility.

2. Talent Pool

• International arbitration demands specialists — arbitrators, counsel, experts. Building this ecosystem in Vizag will take sustained effort.

3. Recognition & Enforcement

• Attracting cross-border parties requires confidence that awards will be enforced fairly and efficiently under Indian law.

4. Global Competition

• Singapore, London and Paris already dominate. For Vizag to compete, it must differentiate rather than imitate.

India has taken steps toward institutional arbitration — the Mumbai Centre for International Arbitration (MCIA) has reported rising caseloads, and the Arbitration and Conciliation (Amendment) Acts sought to streamline proceedings.

Yet, the lack of a cohesive national strategy and persistent judicial delays remain obstacles.

The Andhra Pradesh initiative, if executed with seriousness and autonomy, could push India closer to its stated ambition of becoming a global arbitration destination. But it requires more than a new building; it requires trust, neutrality and international credibility.

Visakhapatnam’s proposed arbitration centre is both ambitious and symbolic. It reflects India’s determination to reclaim its position in global dispute resolution. But ambition must meet execution: institutional independence, sectoral specialisation and judicial support will decide whether this hub becomes a true rival to Singapore or just another underutilised facility.

For now, Andhra Pradesh has thrown down the gauntlet. The global arbitration community will be watching closely to see if India can finally translate aspiration into reality.

Aum Thakur is a Law Graduate of Law Centre-II, Faculty of Law, University of Delhi.