India's institutional arbitration system faces significant issues: inconsistent designation processes, arbitrary court selections, and delayed reforms for an Arbitration Council. The government's recent move to prioritize mediation further complicates matters. The article argues for urgent, comprehensive redesign, including transparency in institutional performance, structured appointments, and technological integration. It stresses that a robust arbitration framework is vital for dispute resolution, advocating for a re-evaluation of current practices despite systemic failures and the government's apparent retreat from arbitration as a primary solution.