The FTA deal, agreed this week, could increase bilateral trade by £25.5bn, UK GDP by £4.8bn and wages by £2.2bn each year by 2040, according to government estimates. It includes copyright protections for the creative sector, and will reduce tariffs across a multitude of market areas including car exports, aerospace and medical devices.
However, legal services market access is not included, despite the Bar Council of India’s historic decision in 2023 to allow foreign lawyers and law firms to practise law in India, in non-litigious matters only and on a restricted and reciprocal basis.
The UK is the world’s second largest legal services provider, after the US, and legal services contribute £57.8bn annually to the economy. India is set to become the world’s third largest economy by 2050.
Expressing disappointment, Law Society president Richard Atkinson said: ‘A deal including the legal services sector has the potential to reap massive economic benefits for both countries.
‘India is one of the last large jurisdictions in the world in which the establishment of foreign lawyers is not possible, meaning a lot of India-related legal work currently takes place outside of India. Greater connectivity with the UK legal services market would allow Indian companies to realise their international ambitions within India at a competitive cost.
‘The presence of UK law firms and UK lawyers would not only facilitate international trade but also provide opportunities for young legal professionals to develop globally competitive skills, without needing to leave India for another international hub. Many UK law firms have India desks with key expertise in the region and are very active on cross-border legal work involving Indian parties.’
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