What is ADR?

Alternative Dispute Resolution (ADR) refers to a set of mechanisms that allow parties to resolve disputes outside the formal court system.

• It includes processes such as arbitration, conciliation, mediation, and other mechanisms that are less formal, more flexible, and generally faster than traditional litigation.

• The primary idea is to reduce the burden on courts while ensuring justice and fairness.

Why ADR is Needed

India’s judicial system is currently facing a crisis of pendency and delays. ADR provides a solution for this.

Judicial Pendency

• Over 5 crore cases were pending in Indian courts as of March 2025 . Courts alone cannot handle such a massive load.

• The Supreme Court had 81,734 cases pending as of May 2025, slowing the delivery of constitutional justice.

• High Courts have over 62 lakh pending cases (India Justice Report – 2025), weakening appellate justice.

Judicial Vacancies

• High Courts have 33% vacant judgeships, and District Courts have 21% vacancies, increasing delays in hearings and judgments.

Low Judge-to-Population Ratio

• India has only 15 judges per million people, far below the 50 per million recommended by the Law Commission (1987).

Long-Delayed Cases

• Many cases in different jurisdictions are pending for 5–10 years or more, denying substantive justice.

Other Advantages of ADR

• Faster & Less Costly Resolution: ADR reduces procedural delays and legal costs, helping individuals and businesses avoid prolonged litigation.

• Boost to Economic Competitiveness: Efficient contract enforcement via ADR strengthens investor confidence and supports the Ease of Doing Business.

• Preserves Social Harmony: Mediation and conciliation encourage participatory settlements, helping maintain relationships in family and community disputes.

• Confidentiality & Autonomy: ADR ensures privacy, protecting business reputation and commercial secrets.

• Expert-Driven Justice: Domain experts as arbitrators provide technical, high-quality resolutions, reducing the likelihood of appeals.

• Filters Frivolous Litigation: Mandatory mediation can resolve avoidable disputes before they reach the courts, lowering the backlog.

• Digital Justice Expansion: Online Dispute Resolution (ODR) improves access, particularly for remote areas, and became especially relevant post-COVID-19.

• Culturally Accepted: Traditional dispute-resolution methods like panchayats make ADR familiar and socially trusted in India.

Constitutional and Legal Basis of ADR

Constitutional Basis

• Article 39A: Mandates the State to ensure equal justice and free legal aid, which underpins ADR initiatives like mediation and Lok Adalats.

Legal Framework

1. Arbitration and Conciliation Act, 1996 (Amended 2021)

   • Provides the framework for arbitration and conciliation.

   • Establishes the Indian Arbitration Council to regulate procedures.

   • Fixes a maximum resolution period of 180 days.

   • Parties may exit mediation after two sessions if unsatisfied.

   • Promotes pre-litigation mediation to reduce court backlog.

2. Mediation Act, 2023

   • Mandates pre-litigation mediation for civil and commercial disputes.

3. Lok Adalats

   • Statutory dispute-resolution forums under the Legal Services Authorities Act, 1987.

   • Disputes are settled amicably with no court fees, and awards carry the force of a civil court decree.

4. Gram Nyayalayas (Village Courts)

   • Established under the Gram Nyayalayas Act, 2008 to deliver speedy, affordable justice in rural areas.

   • Primarily handle minor civil and criminal cases at the grassroots level.

Online Dispute Resolution (ODR) Policy – NITI Aayog, 2021

• Phased Implementation: Infrastructure development → mainstream adoption → primary mode of dispute resolution.

• Light-Touch Regulation: Encourages innovation through flexible self-regulation rather than heavy government control.

• Technology Integration: Uses ICT tools for end-to-end digital resolution, improving accessibility and efficiency.

• Legal and Policy Reforms: Supports amendments to existing laws and introduction of mediation/data protection laws.

• Ethical & Design Principles: Ensures transparency, neutrality, accessibility, and data security in ODR platforms.

• Capacity Building & Awareness: Training professionals, developing infrastructure, supporting legal-tech startups, and raising public awareness.

Challenges of ADR in India

1. Low Public Trust & Awareness: Many citizens still view courts as the only legitimate venue for justice.

2. Capacity Constraints: Lack of uniform training standards for mediators and arbitrators affects quality.

3. Expensive Arbitration: High professional fees discourage MSMEs from using arbitration.

4. Weak Institutional Arbitration: India lacks enough world-class institutional arbitration centres compared to Singapore or London.

5. Judicial Interference:

   • Section 34 allows courts to set aside arbitral awards, reducing finality.

   • Section 37 allows appeals against Section 34 orders, further delaying enforcement.

6. Government as Major Litigant: Public sector entities often challenge awards, weakening ADR efficiency.

7. Digital & Cyber Barriers: ODR faces challenges like digital divide, weak rural infrastructure, and data privacy issues.

Way Forward

• Institutionalizing Mediation & Arbitration: Expand court-annexed mediation centres and global-standard arbitration hubs.

• Capacity Building & Accreditation: Create national certification and continuous training for ADR professionals.

• Limiting Judicial Interference: Restrict Section 34 and 37 interventions to uphold finality of awards.

• Mainstreaming ODR: Invest in digital infrastructure, cybersecurity, and multilingual platforms for nationwide access.

• Government as Model Litigant: Ministries and PSUs should comply promptly with ADR outcomes.

• Strengthening Grassroots Justice: Empower Lok Adalats and Gram Nyayalayas with better staffing, funds, and awareness.

Global ADR Case Studies

In summary, ADR in India is a response to judicial delays, vacancies, and high case backlogs. Its success depends on institutionalization, capacity building, technological integration, and public trust. ODR, Lok Adalats, and Gram Nyayalayas complement traditional courts by making justice faster, cheaper, and socially accessible.

Introduction

• The Ministry of Labour and Employment has released the draft National Labour & Employment Policy – Shram Shakti Niti 2025 for public consultation.

• The policy aligns with India’s Viksit Bharat @2047 vision, aiming to create a modern, inclusive, and technology-driven labour ecosystem.

• It marks a shift from regulation to facilitation, redefining the ministry’s role as an “employment facilitator.”

• Focuses on collaboration among workers, employers, and training institutions using data-driven and integrated systems.

Legal Context

• Labour as a Concurrent Subject:

  • Listed in the Concurrent List of the Indian Constitution, meaning both Central and State governments can make rules and laws.

• Labour Law Reforms:

  • The government consolidated 29 central labour laws into four simplified labour codes to reduce complexity, improve worker protection, and foster formal employment:

    1. Code on Wages (2019) – Regulates wages, minimum wages, and timely payment.

    2. Industrial Relations Code (2020) – Deals with trade unions, industrial disputes, and strikes.

    3. Occupational Safety, Health and Working Conditions Code (2020) – Ensures worker safety, health, and welfare.

    4. Social Security Code (2020) – Provides social security coverage, including provident fund, insurance, and pensions.

Core Objectives

The draft policy emphasizes:

1. Resilient workforce – Able to adapt to changes in technology, industry, and global market conditions.

2. Skilled workforce – Equipped with relevant skills for current and future industries.

3. Inclusive workforce – Gender, regional, and socio-economic inclusion to provide equal opportunities.

4. Prepared for global challenges – Handles technological disruption, climate change, and evolving supply/value chains.

Key Initiatives

A. National Career Service (NCS)

• Purpose: A Digital Public Infrastructure connecting job seekers, employers, and training institutions.

• Features:

  1. AI-enabled job matching & career guidance – Matches candidates to suitable jobs using artificial intelligence.

  2. Credential verification & skill mapping – Ensures workers’ skills and qualifications are certified digitally.

  3. Cross-sectoral & regional employment linkages – Connects opportunities across industries and states.

• Impact: Streamlines employment facilitation, reduces job mismatch, and improves accessibility.

B. Unified Labour Stack

• Integration of major national databases: EPFO (Employees’ Provident Fund Organisation), ESIC (Employees’ State Insurance Corporation), e-Shram, and NCS.

• Benefits:

  1. Interoperable data systems – Facilitates better policy coordination across ministries and states.

  2. Continuous skill development & lifelong learning – Tracks worker skills and enables upskilling.

  3. Universal social protection & income security – Ensures all registered workers have access to benefits.

  4. Real-time labour market insights – Provides data-driven governance and policy-making.

C. Guiding Principles

The policy is founded on four pillars:

1. Dignity of Labour – Recognizes work as valuable, promoting fair wages and humane working conditions.

2. Universal Inclusion – Ensures opportunities for women, youth, differently-abled, and marginalized groups.

3. Cooperative Federalism – Encourages coordination between Central and State governments.

4. Data-Driven Governance – Uses technology and analytics for transparency and evidence-based policy decisions.

D. Seven Strategic Priorities

1. Universal & portable social security – Social security benefits are accessible anywhere in India.

2. Occupational safety & health – Reduces workplace hazards and promotes worker safety.

3. Employment & future readiness – Enhances employability through skill development and career guidance.

4. Women & youth empowerment – Encourages participation of women and youth in the workforce.

5. Ease of compliance & formalization – Simplifies processes for businesses and encourages formal employment.

6. Technology & green transitions – Promotes tech-driven jobs and sustainable “green jobs.”

7. Convergence through good governance – Streamlines policies and processes across ministries and states.

E. Women and Youth Empowerment

• Goals:

  • Increase female labour participation to 35% by 2030.

  • Promote youth entrepreneurship and career guidance.

• Key Initiatives:

  • Single-window digital compliance for MSMEs with self-certification and simplified returns.

  • Expanded career services through NCS platform.

  • Promotion of green jobs and pathways for transitioning into emerging industries.

Technology-Driven Governance

• Unified national labour data architecture ensures coherence and transparency.

• Digital initiatives include:

  1. AI-enabled safety systems – Monitors workplace hazards in real-time.

  2. Predictive analytics for workforce planning – Forecasts skill and employment trends.

  3. Annual National Labour Report – Provides policy insights to Parliament.

  4. Labour & Employment Policy Evaluation Index (LPEI) – Benchmarks state-level performance.

Implementation and Accountability

• Phase I (2025–27): Institutional setup, integration of social security systems.

• Phase II (2027–30): Rollout of universal social-security accounts, skill-credit systems, district-level Employment Facilitation Cells.

• Phase III (Beyond 2030): Full paperless governance, predictive policy analytics, continuous policy renewal.

• Monitoring: Real-time dashboards, LPEI index, and third-party evaluations for transparency and accountability.Expected Outcomes

1. Universal worker registration.

2. Social security portability across states.

3. Near-zero workplace fatalities.

4. Female labour-force participation at 35% by 2030.

5. Reduction in informal employment via digital compliance.

6. AI-driven labour governance across all states.

7. Creation of millions of green and decent jobs.

8. Establishment of a “One Nation Integrated Workforce” ecosystem.

The Shram Shakti Niti 2025 is a forward-looking, technology-driven labour policy that integrates digital systems, ensures inclusion, strengthens social security, enhances employment readiness, and emphasizes sustainability and governance. Its phased implementation, strategic priorities, and clear outcomes aim to prepare India’s workforce for the challenges of 2047.

Why in News

The World Health Organization (WHO) has recently expressed concern over India’s drug safety regulations after at least 20 children died due to consuming contaminated cough syrups. The contaminated syrups identified were Coldrif (Sresan Pharmaceuticals), Respifresh (Rednex Pharmaceuticals), and ReLife (Shape Pharma). This tragedy highlighted critical gaps in regulatory enforcement, monitoring of pharmaceutical companies, and the need for a robust drug safety framework to prevent spurious, substandard, and toxic medicines from reaching consumers.

Regulatory Framework in India

India’s pharmaceutical sector is regulated through a multi-layered framework, combining central and state authorities to ensure the safety, quality, and efficacy of medicines. Key components are:

a. Drugs and Cosmetics Act, 1940 & Drugs and Cosmetics Rules, 1945

• Purpose: Governs the import, manufacture, distribution, and sale of drugs and cosmetics in India.

• Objective: Ensures drugs meet the required standards of quality, safety, and efficacy.

• Significance: Provides the legal foundation for regulating the entire pharmaceutical sector in India.

b. State Drug Regulatory Authorities

• Operate at the state level under the Drugs and Cosmetics Act.

• Responsibilities include:

  • Granting manufacturing and retail licenses.

  • Conducting inspections of manufacturing facilities and pharmacies.

  • Monitoring compliance with quality standards and taking action against violations.

• Challenge: Oversight at the state level is often inconsistent, creating gaps in enforcement.

c. Central Drugs Standard Control Organisation (CDSCO)

• Role: National Regulatory Authority under the Ministry of Health & Family Welfare.

• Responsibilities:

  • Approves new drugs and conducts clinical trials.

  • Lays down standards for drug manufacturing.

  • Controls quality of imported drugs.

• Significance: Ensures uniformity of drug regulation nationwide.

d. National Pharmaceutical Pricing Authority (NPPA)

• Enforces provisions of the Drug Price Control Orders (DPCO).

• Ensures medicines are affordable while maintaining quality standards.

e. Good Manufacturing Practices (GMP)

• Prescribed under Schedule M of the Drugs and Cosmetics Rules.

• Align with WHO guidelines.

• Aim to ensure drugs are manufactured in hygienic conditions, with strict quality control to prevent contamination or substandard production.

Challenges Leading to Spurious Drugs

Despite the regulatory framework, several factors contribute to the prevalence of substandard or adulterated drugs in India:

a. Regulatory Gaps

• Oversight by CDSCO and state authorities is fragmented and inconsistent.

• Weak monitoring allows non-compliant pharmaceutical companies to operate with minimal accountability.

b. Toxic Contamination / Substandard Medicines

• Investigations revealed some cough syrups contained diethylene glycol (DEG), a toxic industrial solvent.

• Such contamination arises due to poor quality control, lapses in laboratory testing, and failure to adhere to GMP standards.

c. Supply Chain and Storage Issues

• Improper storage and weak cold chain management degrade medicines, making them unsafe for consumption.

• Poor distribution practices increase the risk of contamination and reduce drug efficacy.

d. Absence of Mandatory Recall Law

• India does not have a binding national law for mandatory recall of substandard or contaminated drugs.

• Though discussed since 1976, no enforceable recall mechanism exists, delaying removal of unsafe medicines from the market.

e. Rise of Online Spurious Drugs

• WHO estimates 1 in 10 medicines in low- and middle-income countries are substandard or falsified.

• Unauthorized online pharmacies have become a major channel for counterfeit drugs, which is difficult to monitor.

Recommendations for Strengthening Regulation

The Standing Committee on Chemicals and Fertilizers (2024-25) and WHO recommend urgent measures to improve regulation and enforcement:

a. Rigorous Enforcement of Laws

• Strict implementation of the Drugs and Cosmetics Act, 1940 and Drugs Rules, 1945 nationwide.

• Focus on eliminating spurious and adulterated drugs.

b. Swift Legal Action and Stronger Penalties

• Prompt prosecution of non-compliant manufacturers.

• Imposition of harsher penalties including fines and closure of facilities.

c. Strengthened Monitoring and Inspections

• Conduct regular inspections, especially in high-risk regions.

• Ensure compliance with GMP, GDP (Good Distribution Practices), and other safety standards.

d. Legally Enforceable GDP Guidelines

• Make CDSCO’s Good Distribution Practices (GDP) mandatory to maintain quality across the supply chain.

• Helps prevent degradation and contamination of medicines during transportation and storage.

e. Enhanced Inter-Agency Coordination

• Strong collaboration between regulatory authorities, law enforcement, and local agencies.

• Aims to dismantle networks producing counterfeit or unsafe medicines.

f. Enforcing Updated Good Manufacturing Practices (GMP)

• Mandatory implementation of updated GMP standards for all pharmaceutical manufacturing units.

• Ensures hygiene, standardized production processes, and quality testing.

g. Public Awareness Campaign

• Launch campaigns targeting consumers and healthcare professionals.

• Educate the public on identifying counterfeit drugs, reporting violations, and promoting safe consumption.

Conclusion

India’s pharmaceutical sector has a robust legal framework, but incidents like contaminated cough syrups reveal critical gaps in enforcement, quality control, and regulatory oversight. Strengthening inspections, implementing legally binding GDP and recall mechanisms, enhancing inter-agency coordination, and increasing public awareness are crucial to prevent such tragedies. A stronger regulatory ecosystem will ensure that medicines available in India are safe, effective, and reliable, safeguarding public health and reinforcing trust in the healthcare system