Indeed, disputes are the part of one's daily life but it is hardly possible to approach courts for each and every dispute. We have some alternative methods of solving the disputes which is commonly known as the Alternative Dispute resolution (ADR). ADR mainly embodies four mechanisms known as arbitration, negotiation, mediation and conciliation. The research article for the most part talks about the mechanisms included in ADR and how it plays a vital role in the economic development of the country. The researchers taking further the research discussed some of the instances of arbitration and negotiation between the largest economies in the world i.e., India and United States of America. The instances that took place between the two countries are in different aspects that are trade, defence, environment and climate. The instances mentioned above between the respective countries have a common goal to achieve economic development. The researchers while concluding their research shows how ADR plays a major role in the economic development of the country.