From cranes to claims: navigating disputes in India’s infrastructure era

In 2019, the Indian government announced an ambitious infrastructure investment under the National Infrastructure Pipeline (NIP) to be implemented by 2025. Since then, cranes have become a frequent fixture on urban skylines, whilst highways and metro lines stretch across what was once remote landscapes. India is undergoing one of the most significant infrastructure transformations. The shift is being driven by major government initiatives such as the NIP and the Gati Shakti National Master Plan. However, the sheer pace and complexity of this growth has also led to a rise in corresponding construction-related disputes. In response, India’s legal system is evolving to meet these challenges, most notably through the introduction of the legal framework for mediation. This article explores the infrastructure boom in more detail, the rise of disputes and how India’s legal landscape is evolving in response.

India’s infrastructure boom: what’s driving it?

At the heart of India’s infrastructure growth is a set of strategic national initiatives, which are government led but rely on close collaboration with private players, foreign investors, and multilateral agencies. The NIP launched in 2019 and is a Rs 100 lakh crore (approx. USD $1.2 trillion)[i] infrastructure investment plan covering the period from 2020 to 2025. It includes around 9,000 projects across sectors such as energy, roads, railways, ports, airports, water and sanitation, and social infrastructure. The NIP reflects a coordinated effort between the central and state governments, as well as private investors, to create a structured and transparent pipeline of projects intended to support India’s goal of becoming a $5 trillion economy[ii].

Complimenting this is the Gati Shakti National Master Plan which launched in October 2021. Gati Shakti is a government led initiative aimed at improving the coordination and execution of infrastructure projects across India. It provides a digital platform designed to integrate infrastructure planning across central ministries, state governments, and infrastructure agencies. At the core of Gati Shakti is a GIS-based mapping tool to coordinate logistics and infrastructure development, helping avoid duplication and improve efficiency. Another key initiative is the Smart Cities Mission, which focuses on seven primary sectors that drive economic growth: roads, airports, mass transport, logistics infrastructure, railways, ports and waterways. As of April 2025, around Rs 1.50 lakh crore (approx. USD $18 billion) has been invested and over 7504 projects completed[iii].

Meanwhile, large scale programs like Bharatmala and Sagarmala are expanding road and port connectivity, whilst significant investments in renewable energy are aimed at meeting India’s ambitious target of 500 GW of non-fossil energy capacity by 2030. Large-scale solar parks, wind farms, and transmission corridors are under development in states like Gujarat, Rajasthan, Tamil Nadu, and Andhra Pradesh. Bharatmala Pariyojana is a government initiative focused on the expansion and modernisation of India’s road network. The project aims to construct an impressive 34,800km of national highways to create seamless connectivity across the country. Sagarmala, on the other hand, is focused on port-led development, seeking to harness India’s vast coastline and waterways to improve logistics efficiency and reduce transportation costs. These efforts reflect a clear policy shift: infrastructure is not just a development tool, but a core strategy for economic growth, job creation and global competitiveness.

A shifting legal landscape:

Whilst India’s infrastructure boom has opened up significant opportunities, the complex nature of projects coupled with the scale and pace of ongoing developments has resulted in the rise of construction-related disputes. Disputes can delay the delivery of projects, increase costs and create major roadblocks to progress. However, India’s legal system is gradually adapting to meet these challenges. Typically, construction disputes are primarily resolved through arbitration. Most infrastructure contracts, especially those involving government entities, include arbitration clauses. The Arbitration and Conciliation Act 1996[iv] governs the process, and amendments in recent years have aimed to make arbitration more efficient. The 2015 and 2019 amendments introduced time limits and institutional arbitration, but implementation has faced delays and uneven adoption across sectors.

Despite these reforms, arbitration proceedings often remain protracted, frequently taking several years to resolve, often owing to procedural delays and limited availability of arbitrators. Litigation, although used in some cases, is generally avoided in large infrastructure matters due to the slow pace of court proceedings. In response to these challenges, there has been a growing policy shift towards alternative dispute resolution (ADR) methods such as mediation and conciliation. The Mediation Act 2023[v] marks a paradigm shift in the manner in which disputes are approached in India. It has created a formal legal framework for pre-litigation mediation and made mediation settlements legally enforceable. Whilst mediation is gaining traction, particularly in projects involving private investors or multilateral development banks, its adoption in domestic, government-led infrastructure projects is still limited. Nonetheless, there is clear recognition that timely and cost-effective dispute resolution is essential to maintaining momentum in India’s infrastructure growth.

India’s infrastructure boom presents a transformative opportunity for the country’s economy, society and global standing. But with the rapid pace of development comes increased legal and commercial complexity, and the growing volume of construction disputes is a clear sign that the legal infrastructure supporting these projects must evolve alongside. Strengthening dispute resolution mechanisms, whether through faster arbitration, proactive contract management or the growing use of mediation will be essential for long term progress. As infrastructure continues to form the backbone of India’s growth ambitions, resolving disputes efficiently is not just a legal necessity; it is strategically imperative.

Our team of international construction disputes specialists understand the intricacies and pressure of delivering large-scale projects and is well positioned to assist in navigating the legal landscape, managing risks and resolving disputes effectively across the infrastructure sector. If you have any questions or require tailored advice, please get in touch.

[i] National Infrastructure Pipeline: Invest in Infrastructure Projects in India | IIG

[ii] National Infrastructure Pipeline: Invest in Infrastructure Projects in India | IIG

[iii] Smart Cities: 13 of 100 Cities have completed all their Projects

[iv] The Arbitration and Conciliation Act, 1996 | Department of Legal Affairs, MoL &J, GoI

[v] India Code: Mediation Act, 2023