MISSED OPPORTUNITY TO LIBERALISE INDIAN LEGAL SECTOR

Legal services should have been included in the recent Free Trade Agreement (FTA) between India and the UK.

- KUNAL DUA

The failure to include legal services in the recent Free Trade Agreement (FTA) between India and the UK is a missed opportunity for both economies in terms of market access for lawyers.

The Law Society of England and Wales views it as a deliberate exclusion that exposes the complex realities of India’s guarded legal market.

The UK is the world’s second largest legal services provider. Legal services contribute £578 billion annually to the economy. The sector supports around 526,000 people in employment, amounting to 1.6 per cent of the UK workforce.

India is set to become the world’s third largest economy by 2050, and, according to the UK government, the trade deal between the two countries had the potential to almost double UK exports to India.

Many UK law firms have India desks with key expertise in the region and are highly active on cross-border legal work involving Indian parties. Hopes for an Indian market opening rose in 2023 when the Bar Council of India (BCI) published draft rules on the admittance of foreign lawyers. However, these were challenged by the Society of Indian Law Firms. India still restricts the ability of foreign lawyers to form an establishment in the country.

The entry of foreign law firms raises broader issues such as permanent establishment status and legal structures, and these require careful deliberation across multiple government ministries.

This cautious approach reflects deeper concerns about preserving local legal talent and maintaining regulatory control over a profession central to India’s governance structure.

Owing to a common law system based on English law, coupled with its burgeoning economy, India is extremely attractive for foreign lawyers, especially those from England and Wales, for them to be able to deliver their legal services in India.