Arbitration and mediation have emerged as key alternative dispute resolution mechanisms in India, offering efficient, flexible, and cost-effective alternatives to traditional litigation. This paper examines the legal and policy framework governing arbitration and mediation in India, with particular reference to the Arbitration and Conciliation Act, 1996 and the Mediation Act, 2023. It highlights the role of constitutional principles of access to justice and judicial support in promoting these mechanisms. The paper further analyzes recent legislative reforms aimed at institutionalization, professionalization, and reduced court intervention, while identifying persistent challenges such as high costs, delays, and limited awareness. It concludes by emphasizing the importance of effective implementation to strengthen dispute resolution in India.