Strong Institutions Are Foundations Of Economic Growth, Says CJI Surya Kant

Chief Justice of India Surya Kant said strong institutions should not be viewed merely as structures created after an economy develops, but as essential foundations that actively support economic advancement.

Key Takeaways

Speaking at the 11th BRICS Legal Forum, CJI Surya Kant stressed that an effective justice delivery system plays an important role in creating conditions that encourage sustainable economic growth.

The Chief Justice of India identified trust, stability and predictability as three key pillars that the rule of law provides to an economy. He said emerging economies cannot achieve lasting progress without these essential elements.

CJI Surya Kant noted that a nation’s economic strength depends not only on its natural resources or geographical advantages, but on the reliability of its institutions.

According to him, an independent judiciary and an efficient justice system can strengthen confidence among investors, businesses and other economic stakeholders.

The CJI highlighted the expanding significance of BRICS in the global economy.

CJI Surya Kant pointed out that BRICS nations collectively account for more than 40 per cent of the world’s population and approximately 40 per cent of global economic activity based on purchasing power. He stressed that such a grouping requires dependable legal and institutional systems to support economic cooperation.

The Chief Justice of India discussed the broader concept of the economics of justice.

CJI Surya Kant said consistent judicial decisions and public confidence in legal institutions can reduce transaction costs, promote fairness in markets and contribute to faster economic development.

The CJI cited important Indian judicial decisions and said the country’s courts have contributed to greater clarity and efficiency in areas such as international commercial arbitration and insolvency proceedings. He further emphasised that courts should not allow technical considerations to undermine genuine settlements or the parties’ intentions.

Calling for stronger judicial collaboration among BRICS members, CJI Surya Kant proposed a BRICS Judicial Fellowship for judges at an early stage of their careers.