In a groundbreaking panel at the Mint India Investment Summit 2026, experts revealed that flawed dispute resolution and contract enforcement are severely hampering non-banking financial companies’ (NBFCs) vital role in expanding credit access across India, potentially derailing the nation’s economic growth trajectory amid rising investment complexities. This urgent warning underscores how delays in legal processes are stifling capital flow, leaving businesses vulnerable in an increasingly unpredictable global landscape.
The discussion, led by Mint’s National Editor Dina Sain Gupta, featured top legal minds who dissected the core challenges facing India’s investment ecosystem. With NBFCs at the forefront of bridging credit gaps for millions, the panel highlighted that inefficient dispute resolution ranks India a dismal 163rd in the World Bank’s ease of doing business index. This isn’t just a bureaucratic hiccup; it’s a crisis 𝓉𝒽𝓇𝑒𝒶𝓉𝑒𝓃𝒾𝓃𝑔 to erode economic momentum, as investments stall and contracts falter under the weight of prolonged litigation.
Legal experts like Amar Gupta of GSA Advocates emphasized that the lack of predictability in outcomes costs India up to 2% of its GDP annually. For NBFCs, which rely on swift enforcement to lend confidently to startups, infrastructure projects, and small enterprises, this means higher risks and reduced lending appetite. The panel’s insights paint a dire picture: without reforms, India’s credit expansion could grind to a halt, amplifying inequalities and stifling innovation in a fast-evolving market.
Debilina Parab, Senior Vice President at Bkart Group, pointed out the pitfalls of outdated arbitration systems, where retired judges often lack the technical expertise for complex commercial disputes. This gap is particularly acute for NBFCs navigating cross-border deals, where delays can mean the difference between profitability and collapse. As geopolitical tensions, from West Asia conflicts to supply chain disruptions, add layers of uncertainty, NBFCs face an urgent need to adapt their contracts to include robust force majeure clauses, as discussed by Ahmed Bazin of Marico.
The conversation turned to practical solutions, with panelists urging the government to mainstream institutional arbitration and transform commercial courts into centers of excellence. Amit from the panel stressed that investors demand timely, cost-effective resolutions, warning that without them, capital influx will dry up, directly impacting NBFCs’ ability to fuel growth. This isn’t theoretical; real-world examples from the COVID-19 era show how unforeseen events crippled operations, forcing contract rewrites that NBFCs couldn’t afford.
In sectors like manufacturing and technology, where NBFCs are key financiers, the risks are amplified. Prolonged disputes mean lost opportunities, as businesses hemorrhage resources waiting for verdicts. The panel advocated for integrating subject matter experts into tribunals and leveraging AI for faster administrative processes, potentially slashing resolution times from years to months. This shift could revolutionize NBFCs’ operations, enabling them to extend credit more securely and stimulate economic activity.
Yet, the roadblocks persist. Adjournments and procedural bottlenecks, as noted by the experts, account for up to 60% of case delays in India, a statistic that should alarm policymakers. For NBFCs striving to democratize credit access, especially in rural areas, these inefficiencies translate to higher interest rates and reduced outreach. The urgency is palpable: without immediate reforms, India’s dream of becoming a global financial hub could unravel, leaving NBFCs in a precarious position.
Audience questions at the summit echoed these concerns, with participants like Satish Dante Gopar calling for collective advocacy to pressure the government. The response was clear—industry bodies must engage more aggressively, as reforms like the 2023 Mediation Act show promise but fall short in sectors with entrenched disputes. NBFCs, as growth engines, stand to benefit immensely from such changes, fostering a more resilient credit ecosystem.
As the panel wrapped, the message was unequivocal: India’s economic ascent hinges on fixing these foundational issues. For NBFCs, expanding credit isn’t just about opportunity; it’s about survival in a world of rapid disruptions. The summit served as a wake-up call, urging stakeholders to act now before the delays become an irreversible drag on progress.
This breaking revelation from #MintIIS2026 forces a hard look at India’s legal framework, with experts warning that the status quo could deter foreign investment and hobble domestic innovation. NBFCs, pivotal in channeling funds to underserved sectors, need a streamlined system to thrive, making this not just a legal debate but an economic imperative for immediate action.
The implications ripple far: if dispute resolution isn’t overhauled, NBFCs might pull back, stunting job creation and entrepreneurial ventures. Panelists like Gupta stressed that technology, such as online dispute resolution, could be a game-changer, reducing physical hearings and accelerating decisions. This isn’t optional; it’s essential for NBFCs to maintain their growth momentum.
Wrapping up, the summit highlighted a path forward: specialized judges, AI-driven processes, and stronger mediation frameworks. For NBFCs, these steps mean unlocking credit potential, driving India’s ascent in the global economy. The time to act is now, as every delay compounds the cost, underscoring the urgent need for reform in this critical arena.