Law must move from catching up to driving economic growth: Attorney General R. Venkataramani

Attorney General R. Venkataramani

Law can no longer remain a “catching-up machine” responding to economic change after it occurs and must instead play a central role in shaping India’s future growth, Attorney General of India R. Venkataramani said at the ETLegalWorld Commercial Disputes Conclave 2026.

Delivering the inaugural address on Commercial Dispute Resolution as a Strategic Driver of Economic Growth, Venkataramani called for a rethink of India’s commercial legal architecture, including contract law, procedural frameworks and substantive principles governing economic activity.

“For long, I think the law has been a catching-up machine. I think the roles must be reversed,” he said, arguing that incremental remedial changes will not be sufficient for an economy undergoing rapid transformation.

Justice delivery is now an economic question

Venkataramani said India’s legal system historically focused heavily on constitutional development, democracy and redistribution, while the economic consequences of delays in justice delivery received relatively limited attention.

The expansion of markets, cross-border transactions, investment and innovation has fundamentally changed that equation. Justice delivery, he argued, can no longer be regarded solely as a legal issue; it is increasingly connected to economic fairness, investment returns and the functioning of an open economy.

He linked the rise of arbitration and alternative dispute resolution to this shift, noting that businesses require mechanisms beyond an overburdened adversarial court system.

The distinction between “mainstream” litigation and “alternative” dispute resolution itself may now need reconsideration, he suggested. Rather than treating arbitration and mediation as secondary routes, India should recognise “many mainstreams” for resolving commercial disputes.

Investment needs fairness as well as returns

Venkataramani also highlighted the changing nature of investment, which now extends beyond traditional capital into intellectual resources, human capital, education and management.

While investors legitimately expect returns, he cautioned that investment protection cannot override principles of liability, non-discrimination and fairness.

“All investment, regardless of their places of origin or the place of deployment, must listen to the global common good,” he said.

Case for a new commercial framework

Venkataramani suggested that India may need to examine a new contract code and procedural framework, alongside substantive commercial principles that better reflect contemporary economic realities.

While the Commercial Courts Act created an important procedural framework, he said India must go further and develop legal principles capable of aligning commercial activity with economic and social objectives.

For India’s commercial justice system, Venkataramani said that law must evolve from reacting to economic transformation to helping design the institutional foundations on which sustainable growth can take place.

The remarks came as the fifth edition of ETLegalWorld Commercial Disputes Conclave 2026 is currently underway in New Delhi, bringing together legal professionals, policymakers, industry leaders and dispute resolution experts to discuss the evolving commercial justice ecosystem. The conclave, themed “Building Trust, Speed & Certainty in India’s Commercial Justice Ecosystem,” is examining the institutional and legal reforms needed to strengthen India’s position as a trusted destination for global business, investment and dispute resolution.