Singapore welcomes India's decision to sign the UNISA

Singapore has welcomed India's decision to sign the United Nations Convention on International Settlement Agreements (UNISA) to boost the confidence of foreign investors.

In a bid to enhance the confidence of foreign investors about India's commitment to adhere to international practice on alternative dispute resolution, the Indian Cabinet on Wednesday approved signing of the UNISA by New Delhi.

According to an official statement, the signing of the convention will provide a positive signal to foreign investors about India's commitment to adhere to international practice on alternative dispute resolution (ADR) mechanism.

The convention, also known as the Singapore Convention for Mediation (SCM), will be signed either in Singapore on August 7 or at United Nations headquarters. As of now, 38 countries are scheduled to take part in the event.

“We are pleased to hear that India will be one of the signatories,” Singapore Law Minister K Shanmugam told PTI on Wednesday, adding that the preparations for the SCM are on and they look forward to a successful signing.

The UN treaty is named SCM as Singapore took a lead in drafting it.

The minister highlighted its importance for India, citing the country's strong economic growth with export growth averaging 10 per cent in recent years.

India has substantial interests in protecting the Indian companies' investments in international markets and as such interest in the treaty, Shanmugam said in his observation of the India's economic role in the world.

Likewise, the convention on mediation, along with Indian arbitration and litigation processes, give more confidence to foreign investors, he added.

“India has taken a strong step in dispute resolution – it has changed its rules of court,” Shanmugam noted, citing the growing success of the Mumbai Arbitration Centre.

Having set up a successful arbitration centre, it would be in India's interest to set up a mediation centre, he said.

Shanmugam hoped Singapore could be a neutral ground for mediation given its close business and cultural ties with India and having more than 8,000 Indian companies operating from here into the Asia Pacific region.

He said he sees the potential of over 8,000 Indian companies in Singapore using the convention as many of them are already using the arbitration route in Singapore.