Footnote to £1bn free trade plan reveals UK to barter for limited India foreign firm entry (again)

Liberalisation is back on the agenda; then again, it has been for decades
Liberalisation is back on the agenda; then again, it has been for decades

Against the backdrop of Brexit and vaccine diplomacy the United Kingdom and India yesterday agreed to a deal to increase investments by $1.39bn and to work on a longer-term bilateral free trade deal between the countries (dubbed an “Enhanced Trade Partnership”), as widely reported.

The already announced deal includes agreements on migration and cooperation on climate change, technology and in the pharma sectors, as well as the commitment to soon begin full trade talks to hammer out the Enhanced Trade Partnership (ETP).

However, not widely covered and right at the bottom of the UK government’s press release of the deal, as pointed out to us by an eagle-eyed reader, there is something that will be of interest to regular readers and followers of the ancient and never-ending story of Indian legal market liberalisation - ‘will they or won’t they?

In the press release, the UK government wrote that “Trade barriers addressed by the Enhanced Trade Partnership include”:

Commitment to work to remove barriers in the Indian legal services sector preventing UK lawyers from practising international and foreign law in India, a step that could significantly increase UK legal services exports and UK legal services imports from India.

That language is, of course, a textbook example of being non-binding.

What does it mean? Same as always

But for those hoping for the entry of foreign law firms to India, the above is a sign that at least the UK still has its eyes set on pitching for its law firms to be able to do more business in India.

And post-Brexit that may not be surprising: the legal sector and its London-headquartered giant international law firms are some of the few remaining trump cards in the UK economy that could remain relevant even without Europe.

For opponents of liberalisation, there is solace that this is neither the first time that India has considered the subject, nor the first time that the UK (such as in 2016;; and 2011) or other countries’ delegations have brought it up (and dropped, such as by Obama).

Nor is it therefore likely to be the last.

The Indian government’s press release from yesterday about the ETP makes no explicit mention of services, let alone legal ones, for instance.

And domestic pressure might make this a tough point to press for the UK: lobby groups such as Society of Indian Law Firms (Silf) and Bar Council of India (BCI) have furiously and (apparently) successfully lobbied against attempts to open up the sector in the past.

That is albeit corporate general counsel (GCs) having expressed a preference for foreign lawyers’ entry, while the Indian National Bar Association (INBA) and some senior lawyers, such as senior L&L partner Mohit Saraf and senior counsel Harish Salve and Gopal Jain had also spoken in favour.

In short, the situation is much the same as it has been for decades with plenty of positive intentions and statements for liberalisations made from both governments without a pudding of proof ever getting baked.

As such this story will no doubt continue though even without an end.

Comments

Guest 5 May 2021, 13:43
+5 -0
Will Manan Mishra now again be writing to Modi? BTW no news of Mishra these days. What happened? Is he ok?
KaiseBhai? 5 May 2021, 17:44
+6 -0
I have always failed to understand how trial court lawyers would be affected by the entry of foreign law firms. The two cater to very different markets. Can someone explain this to me, please?
Guest 5 May 2021, 13:49
+19 -0
Modi has a brute majority since 2014 but has enacted very few economic reforms, leave alone legal sector reforms. I honestly can't see this happening so long as the following people wield influence in the government:

- RSS and Swadeshi Jagran Manch
- Bihar/trial court advocates lobby (led by the law minister and BCI chairman)
- Indian family law firm lobby (led by a person linked to Modi's favourite industrialist)
Guest 6 May 2021, 05:03
+11 -0
The barriers to foreign law firms entry should be dropped because I don't think anyone wants to work at these family law firms and it will at least bring vrespite if not total end to the slave cultures at at not just these but all of India's law firms.
Skeptic 7 May 2021, 04:47
+5 -0
I'm not too sure about that. If foreign firms do open up in India, the mid management level will quickly be occupied by desi firm lawyers who are used to their ways of corporate slavery and toxic work culture. Won't be too long before the same old nonsense is perpetuated ad nauseam at foreign law firms in India
Eagle eyed reader 5 May 2021, 18:26
+0 -0
I disagree - this is a commitment to open up the market. Might still take a while but this is "no backsies" territory really. I think the only thing this will be contingent on is UK also implementing its end of the commitment to remove market barries (for example for Indian medical professionals).

Do try to score a copy of the declaration if you can! Will make for an interesting read.

Cheers
Guest 6 May 2021, 03:35
+13 -0
All young lawyers in India want foreign law firms for better job opportunities. Only a few crony capitalist scoundrels are opposing it.
Guest 6 May 2021, 03:39
+7 -3
The Modi govt has enacted zero economic reforms excepting those that benefit Adani and Ambani. Therefore, the question to ask is whether the entry of foreign law firms will benefit Adani and Ambani.
Swadesi Controversy 6 May 2021, 06:05
+0 -4
What is that foreign law firms can offer that Indian law offices can't?
In-housie 6 May 2021, 06:16
+10 -1
Quality.
babaji 6 May 2021, 06:16
+12 -0
respect
Swadesi Controversy 6 May 2021, 14:03
+0 -1
and another stakeholder in promoting NLU restricted law firm
Putinbot 6 May 2021, 17:32
+2 -0
Money
Guest 6 May 2021, 15:46
+2 -0
Even if foreign law firms arrive, only a few Indian law grads would end up working there. Since the attrition rate would be low, these firms won't need to recruit in bulk every year unlike the Indian law firms. So the job market is unlikely to be grossly affected anyway.