India has undergone significant transformation to become arbitration-friendly, implementing legislative reforms through the Arbitration and Conciliation Act of 1996 and subsequent amendments in 2015 and 2019. However, challenges persist, particularly regarding judicial interpretation of the public policy exception. The judiciary initially adopted a narrow interpretation in cases but later expanded it significantly, leading to increased judicial intervention. The 2015 amendments attempted to restrict grounds for setting aside awards, but 2021 amendments introduced automatic stays for fraud/corruption claims, potentially enabling tactical litigation. Inconsistent judicial interpretation across courts creates unpredictability, discouraging foreign investment. Unlike arbitration-friendly jurisdictions that maintain restrained approaches, India's ambiguous public policy provisions undermine arbitral finality and effectiveness as a dispute resolution mechanism. - (AI Summary)