This report examines why arbitration in India has not delivered on its promise of being faster, cheaper, and more trusted than litigation—despite three decades of reform. Based on interviews with judges, arbitrators, counsel, public sector undertakings, and industry, as well as a targeted review of recent court and arbitration practice, it identifies the systemic incentives that sustain delay and mistrust. The study highlights how poor accountability, automatic government appeals, ad hoc processes, and excessive court intervention undermine arbitration. It also sets out practical reforms to make delay costly, strengthen transparency, and reframe government disputes through institutional and online mechanisms.