In the last decade or two, we have witnessed a dramatic shift in the way world operates. Gone are the days when people conducted businesses with other party residing within their domestic boundaries. Since the spread of globalization, business world has turned into a global village. People are transcending boundaries while collaborating with businesses having their base in another country. However, not every meeting takes place physically. In the post-COVID scenario, almost all the businesses are conducting their meetings virtually. When disagreements or disputes between the interested parties arise, they generally resort to the methods of arbitration, conciliation, mediation and the like instead of knocking the doors of respective courts. These alternative dispute mechanisms have turned out to be a boon for the aggrieved parties since it saves tones of litigious costs, time and energy. Arbitration is at the forefront of the most preferred dispute resolution mechanism by the businesses. The Arbitration and Conciliation Act's statutory framework, which governs how international arbitration plays a significant role and has evolved over two decades into an ideal tool for resolving disputes abroad. Even the Indian courts have imputed a more sincere interpretation to the arbitration clauses as it will be reflected in this article. Through this article, the author hopes to inform the readers on how and when arbitration processes are carried out in cases involving international trade, as well as the difficulties that arise while doing so.