Arbitration has gained significant importance in India as an alternative method for resolving commercial disputes. In recent years, the Indian government has taken several initiatives to promote arbitration and make the country a preferred arbitration hub. This research explores the recent developments in arbitration in India and identifies the key challenges that need to be addressed for its successful implementation. It provides an overview of the legal framework, institutional support, and judicial approach towards arbitration, highlighting the changes introduced to streamline the arbitration process. Additionally, it analyzes the challenges faced by the Indian arbitration system, including issues related to enforcement, judicial intervention, excessive delays, and the need for capacity building. The article concludes with recommendations to address these challenges and further strengthen the arbitration regime in India.