In the commercial sphere, arbitration is a quite common form of conflict resolution mechanism; one can discover an arbitration clause included in most business contracts. The Arbitration and Conciliation Act of 1996 was enacted to resolve conflicts outside of court in a quick and friendly way and responding to the artificial intelligence and digital revolution, India has passed the Arbitration and Conciliation (Amendment) Act, 2019. Nevertheless, it is observed that India chooses ad hoc style of arbitration over institutional manner of conflict resolution. This inevitably calls for the examination and assessment of the several characteristics of both types of arbitration as each has its own advantages and disadvantages such as the existence of the old law frameworks, the presence of the traditional thinking mode, and Slow arbitration procedures are among them are highlighted in the paper. It is also noted that the international arbitration seat is outside India with Indian participation as parties to it, in case of conflict. Thus, the measures are proposed in the sphere of increasing the awareness, having the proper legislation and appropriate institutional support and development of institutional arbitration in India. The paper further contrasts India’s arbitration to other similar centers such as SIAC and HKIAC based on their support from judiciary, infrastructure and professional competency. As for the measures to improve the arbitration environment in India, the paper also discusses education programmers, a shift of culture, the reinforcement of the position of the legal profession, and enforcement of the mechanisms. It all underlines such important facets as the efficacy of costs, the collaboration with the international counterparts, and adherence to the world practices. Therefore, this research argues that if these challenges are tackled and proper reforms conducted, India has the potential to be an ideal place of international arbitration. This change would not only help change India’s status in the international legal landscape but also significantly boost the country’s economy hence establishing the country as the preferable destination for the settlement of international commercial disputes.