Whalesbook
Trilegal partner Akshay Jaitly emphasized at the London International Disputes Week 2026 that India's future growth depends on strong institutions and regulatory efficiency, not just the performance of large firms. This signals a shifting investor focus from select corporate growth to long-term systemic stability.
What Happened
At the recent London International Disputes Week (LIDW) 2026, Akshay Jaitly, a partner at the law firm Trilegal, discussed the structural requirements for India's next phase of economic expansion. Speaking to a global audience, Jaitly argued that for India to sustain its long-term growth, the country must focus on strengthening its institutions and the rule of law. He proposed that the nation requires a second wave of reforms, building upon the foundational liberalisation measures introduced in 1991.
Why Structural Reforms Matter
The discussion at the event highlighted that while India has seen significant economic progress, the next stage of development is viewed as an institutional story. Historically, the 1991 reforms played a pivotal role in opening the Indian economy to the world. However, the current perspective from legal and economic experts is that sustaining momentum requires more than just opening markets. It requires creating a robust framework where systems, rather than individual corporations, drive success.
The Shift from 'Big Corporate' Growth
A key point raised during the discussion was the true measure of economic vitality. Investors often look at the performance of the largest companies as a proxy for the economy. However, Jaitly argued that the real test of an economy lies in the environment for small and medium-sized enterprises. The ability of these businesses to start, operate, and scale without friction is a more accurate indicator of a healthy, growing economy. Relying solely on large corporations can sometimes mask underlying structural issues, as these firms may succeed due to proximity to government or favorable market conditions rather than a broadly efficient system.
Why Predictability Drives Investment
For equity investors, the comments on regulatory capacity are significant. The formal economy in India relies heavily on regulatory oversight. The efficiency and predictability of these regulators are what foster trust and confidence among long-term capital providers, including foreign institutional investors. When regulations are clear, consistent, and efficiently enforced, the risk of business disruption decreases. This stability is essential for investors who prioritize long-term asset quality over short-term gains.
The Geopolitical Context
The discussions also covered the evolving India-UK commercial corridor. Experts noted that while geopolitical shifts are causing global companies to reassess their supply chains and risk profiles, India's inherent strengths—such as its demographic dividend, digital infrastructure, and large middle class—continue to attract global interest. However, navigating these shifts requires proactive planning regarding sanctions, tariffs, and cyber threats, reinforcing the need for stronger contractual and regulatory frameworks.
What Investors May Monitor
Moving forward, investors may want to pay attention to indicators of institutional and regulatory progress in India. This includes watching for improvements in the ease of doing business, the speed and clarity of contract enforcement, and the overall efficiency of regulatory bodies that govern sectors like finance, manufacturing, and technology. These factors act as the foundation for a more resilient investment climate, helping to ensure that the growth of India's capital markets is backed by a stable and transparent legal structure.