From startups to infrastructure: Why mediation is moving beyond just a 'good idea'

Mediation is gaining traction in commercial contracts, construction and infrastructure, banking and finance, technology disputes and family business governance. Cross-border trade and startup ecosystems are also turning to mediation for speed and confidentiality. In a time when case pendency across the courts has reached 4.86 crore, alternative dispute resolution is gaining popularity, but the single biggest barrier is a lack of trust in the process’s integrity, said Pavani Sibal, chief executive of ADR ODR International (AOI) India, in an interview.

Edited excerpts:

The Mediation Act of 2023 was a legislative milestone. Has it changed anything on the ground, or does a wide gap still exist between the law's intent and its adoption?

I view the Mediation Act as a watershed reform that has begun to formalise standards, institutionalise mediation, and enhance enforceability. Yet, adoption on the ground remains uneven. Awareness among litigants and referral practices within courts are still developing, and capacity building for mediators is a continuing need. The intent is clear; the ecosystem is catching up. With sustained training, judicial encouragement, and coordinated engagement with the Bar Council of India and industry, the gap will narrow and mediation will assume its rightful place in India’s dispute resolution architecture. India is slowly steering in the right direction.

Which sectors are driving mediation’s growth in India today?
I see mediation gaining strong traction in commercial contracts, construction and infrastructure, banking and finance, technology disputes and family business governance. Cross-border trade and startup ecosystems are also turning to mediation for speed and confidentiality. We partner with industry bodies and in-house counsel to embed mediation clauses at the contracting stage and deliver training aligned with global best practices, ensuring quality, enforceability, and user confidence.

Many litigants still distrust mediation’s neutrality and enforceability. According to you, what is the single biggest barrier to mainstreaming it?
I believe the single biggest barrier is a lack of trust in the process’s integrity. Litigants question neutrality, consistency of mediator quality, and the certainty of outcomes. Laws can mandate frameworks, but confidence grows only through predictable standards, rigorous accreditation, and visible enforcement of mediated settlements. When users see that mediation is professionally administered, ethically governed, and reliably enforceable, adoption follows naturally.

How can one ensure that India has more internationally accredited mediators?
We secure quality through tiered accreditation, transparent assessment, periodic renewal, and enforceable codes of conduct. To expand the pool of internationally accredited mediators, India should align training with globally recognised benchmarks, facilitate co-mediation with international practitioners, and promote cross-border certification pathways.

Institutional rosters based on merit, outcome tracking, and peer review will further build credibility. With coherent standards and sustained capacity building, India can produce mediators who meet global expectations while remaining responsive to domestic realities.

Five years from now, what will a successful Indian mediation ecosystem look like in terms of caseload, public trust, and India's standing as a global ADR hub?
Five years on, a successful ecosystem will be measured by volume, confidence and global relevance. India should see a substantial shift of commercial disputes, domestic and cross-border, into institutional mediation, with court-referred matters forming a steady pipeline and high settlement durability. Public trust will be evidenced by routine inclusion of mediation clauses in contracts, consistent judicial endorsement of outcomes, and a recognised cadre of rigorously accredited mediators.

At ADRODR India, we aim to position India as a preferred seat for international mediation and ODR in Asia, supported by interoperable standards, secure digital platforms, and sector-specialised panels. Indian enterprises will treat mediation as the default first step, not an afterthought. In that environment, efficiency and fairness will reinforce one another, positioning India as a mature, credible, and globally connected ADR hub.