In an increasingly inter-connected world, where transborder deals are becoming the norm, dispute resolution is undergoing serious changes. Given the diverse interests at stake in investor-state disputes, the exhaustion of local remedies clause must also undergo changes to successfully adapt to the situation. Thus, it becomes especially crucial for a developing economy such as India to revamp its own outlook of investor-state dispute resolution. This paper shall analyse the current Indian situation vis- a-vis approaches adopted by other jurisdictions such as China and the European Union. Ultimately, the author aims to formulate suitable approaches, that are tailor made to suit the Indian context while also being able to deliver on the expectations of this increasingly inter-connected business ecosystem.