DICTATION EXERCISE - 43

I am delighted to have this opportunity to address this business summit, which is aimed at furthering economic cooperation between India and Poland. India sees Poland as an important emerging economic partner, not just in Europe but in the world. Poland’s transformation over the last two decades has been remarkable; the growth of its economy impressive. This change is visible all around us. Today, Poland is India’s largest economic partner in Central Europe with bilateral trade that has grown to US $ 2.8 billion in 2016. I understand that this marked a growth of nearly 25% over the level of trade in the previous year. Investments are growing rapidly in both directions. This strong economic interaction between India and Poland is an indicator of the growing economic strengths of our countries. As Polish business looks for markets and business opportunities¹⁴⁰ beyond Europe, India is a natural destination. With a growth rate of over 7%, despite the general global downturn, India¹⁶⁰ today is not just the fastest growing major economy in the world, it is also one of the most open and welcoming destination for investments and technologies. A vibrant democracy of 1.3 billion people with a young, skilled workforce, India offers an aspirational middle class market of over 400 million people. The constant reforms in fiscal and investment facilitation policies are transforming the economic scenario in India. A landmark Goods and Services Tax reform, for instance, is aimed at making India a unified market, with all 29 states offering an identical and predictable tax environment. Increasing transparency and a liberalized investment climate now allows the smooth flow of FDI in sectors like defence, railways, civil aviation and pharmaceuticals. We have²⁸⁰ seen a strong global confidence in the India story, with a surge in Foreign Direct Investments, which reached over US $ 50 billion in 2016.

India’s 29 states now offer a climate of both cooperative and competitive federalism, with quantum³²⁰ improvements in investment conditions in different Indian states. Some Polish regions are already availing of the business opportunities that Indian states offer. The new policy initiatives taken by the Union government, such as Make in India, Skill India and Digital India schemes, present new business opportunities for Polish companies in areas such as defence, food processing, coal and mining, healthcare, pharmaceuticals, bio-technology and renewable energy. Cooperation in the education sector can become an important area of cooperation for us. India’s young are eager to seek educational opportunities that Poland offers. We already have some 2500 Indian students in Poland. These⁴²⁰ students add to the resources of Poland’s distinguished universities and will act as bridgeheads for our future engagements. I understand that the delegation led by the Deputy Prime Minister of Poland that visited India in January for the Vibrant Gujarat Summit, had useful interactions with our political leadership and our business community. We have identified possible opportunities in sectors like⁴⁸⁰ food processing, mining, aerospace and defence. I am sure that the genius of our businessmen, on both sides, with their sense of adventure and innovation, will result in a many more mutually beneficial ventures. I wish this business summit all success.

The Director General has requested me to inaugurate a conference on a subject about which I know next to nothing. I am nevertheless grateful to him for inviting me today. A department of works, anywhere and in any period⁵⁶⁰ of history, has been an essential part of governance systems. It is difficult to visualize those edifices like the Meenakshi Temple, the Taj Mahal or the Red Fort or innumerable other iconic structures could have been built without a body of persons designated to translate the visions of the rulers into visible reality. The Central Public Works Department, or the CPWD, as the principal Public Works Organization of the Government of India has had a long and interesting history since⁶⁴⁰ its inception in July 1854 as the Ajmer Central Division for colonial works. The city of New Delhi, as we see it, as well as the buildings in Imperial Shimla and other prestigious buildings like Mayo College Ajmer, can largely be credited to the works of CPWD. This has been true, with greater intensity and diversity, of the period after⁷⁰⁰ Independence. The CPWD today is a multifaceted infrastructure construction and maintenance Agency with some of the best construction engineering, architectural and horticultural capabilities. It is the main agency entrusted with the largest, most prestigious and most difficult construction works. The average citizen, however, sees only the end product. Little does he know that the execution of complex infrastructure projects involves a multitude of stakeholders and vendors, occurrence of disputes, despite careful planning and risk assessment, is but natural. It was Mahatma Gandhi who said that "Differences we shall always have but we must settle them all, whether religious or other,⁸⁰⁰ by arbitration." Our legal framework provides for lawsuits and trials as the legal method for resolving disputes. However, concerns about court congestion and delays, rising litigation costs, and the negative psychological and emotional impact of litigation have led to search⁸⁴⁰ for alternative methods.

Arbitration is one of the preferred alternative dispute resolution processes and is finding increasing use in both the private and public sector. Arbitration is often understood as a process where the disputing parties present their case to a neutral third party, who renders a decision. It is considered an efficient alternative to litigation because it is quicker, less expensive, and provides greater flexibility of process and procedure. The parties often select the arbitrator and exercise control over certain aspects of the arbitration procedure. Arbitrators also bring domain expertise to the specific subject matter of the dispute, providing for a more efficient and quicker process. Such domain skills are particularly useful in cases involving technical arbitration. Arbitration is⁹⁶⁰ not an innovation of modern times. Evidence of commercial arbitration has been found in all periods of history. In India, mediation and⁹⁸⁰ arbitration have enjoyed respectable place as a means of resolving disputes since the Vedic times. The first modern arbitration law in India, however, was enacted as early as 1772 in form of the Bengal Regulation Act of 1772. It was updated in 1940, and again through the Arbitration and Conciliation Act, enacted in 1996. Aimed at reducing the excessive workload on our courts, the Act streamlined the arbitration process. It provided for enforcement of the arbitral awards with the same force as a court decree, in order to provide for speedy solution to disputes. The Legislation covered both international and domestic commercial arbitration and conciliation. The renovated Arbitration Act of 2015 has further sanctified the arbitration process by granting even more finality to the arbitral award.

There is much demand today for an internationally proven and judicially supported private method¹¹²⁰ of civil dispute resolution, and arbitration is increasingly being seen as a crucial element in functioning of market economies. Arbitration process in India has evolved over the years and now offer a useful and speedy tool for resolution of disputes that saves both the court's and the litigants’ time. It has provided the business and private citizens with an approachable alternative to litigation. However, for arbitration to become a widely accepted practice, arbitration needs to be based on judicious application of law and fair and just treatment of the facts. In short, the quality of arbitrators will determine the credibility of the process. For business dispute resolution, it is becoming ever popular for the advantages it brings. While the Courts provide a public forum for dispute resolution, arbitration, and mediation, allow for the private resolution of disputes away from media¹²⁶⁰ attention and with confidentiality. I am sanguine that the deliberations that would take place in this conference would enrich the¹²⁸⁰ participants and generate the novel ideas that can be utilized for betterment of the field of arbitration.