In line with promoting the ease of doing business in India, Singapore has welcomed the Modi Cabinet's decision to sign the United Nations Convention on International Settlement Agreements (UNISA) to boost the confidence of foreign investors. The Cabinet had approved the signing of the UNISA on Wednesday.
Signing the convention will provide a positive signal to foreign investors about India's commitment to adhere to international practice on alternative dispute resolution (ADR) mechanism, an Indian government statement read.
The signing ceremony is scheduled to be held either in Singapore on August 7 or at the United Nations headquarters. As of now, 38 countries are scheduled to take part in the event, also known as the Singapore Convention for Mediation (SCM) as the island nation took the lead in drafting it.
Singapore Law Minister K Shanmugam said he was pleased to hear that India would be signing the agreement, adding that the preparations for the SCM are on track. The minister highlighted its importance for India, citing the country's strong economic development with export growth averaging 10 per cent in recent years.
“India has taken a strong step in dispute resolution – it has changed its rules of court,” Shanmugam noted, citing the growing success of the Mumbai Arbitration Centre.
The Indian government also said that in order to encourage international commercial arbitration in India and to evolve a comprehensive ecosystem, it is establishing the New Delhi International Arbitration Centre (NDIAC) as a statutory body.