Whalesbook
UK Attorney General Richard Hermer recently emphasized that closer legal ties between India and the UK are essential for trade growth. Following the 2025 India-UK Free Trade Agreement, the focus is now on how permitting foreign lawyers to operate in India can streamline cross-border business and investment.
What Happened
Attorney General for England and Wales, Richard Hermer KC, has called for greater flexibility between the legal professions of India and the United Kingdom. Speaking at a recent event in London, Hermer highlighted that the shared common law heritage—a legal system used by both nations—is a strong foundation for future economic prosperity. His comments come as both nations look to deepen their bilateral relationship following the finalization of the India-UK Free Trade Agreement in May 2025.
Why Legal Flexibility Matters for Business
For investors and corporate leaders, legal systems are more than just rules; they are the infrastructure that supports economic activity. Hermer noted that there is a natural synergy between the UK and India in how they approach business and commerce. When legal systems are compatible, it becomes easier and cheaper for companies to set up offices, negotiate deals, and resolve disputes across borders.
In the past, the lack of full access for international law firms in India often created friction for multinational companies. If a company from the UK wanted to invest in an Indian venture, they often had to navigate two distinct and sometimes disconnected legal frameworks. Improved access to legal services can help lower these barriers, making it smoother for capital to flow between the two nations.
The Shift in Legal Regulations
A major talking point is the recent move by the Bar Council of India to allow foreign lawyers to practice in India on a limited, non-litigation basis. This means international lawyers can advise on foreign law and international arbitration but cannot appear in Indian courts. Hermer described this as a significant step toward India's integration into the global legal market.
This change is particularly important for India's arbitration landscape. London is globally recognized as a leading hub for settling international business disputes. By aligning its regulations, India is positioning itself to handle more complex international contracts, which can attract more global players who value the stability and predictability of legal rules.
How Investors Should Read This
Investors often look for countries that provide a stable, predictable legal environment. When a country opens its professional services sector, such as legal or accounting, it is often seen as a signal that the economy is maturing and becoming more "investor-friendly."
For companies in the financial, technology, and manufacturing sectors, this development may reduce the cost of legal compliance when dealing with UK-based partners. It may also lead to better corporate governance standards, as international law firms often bring global best practices with them. However, it is not a complete market opening. The restrictions mean that local Indian law firms will continue to hold the primary role in domestic court matters, preventing a sudden displacement of local legal professionals.
What Investors Should Track
Investors may want to monitor how this opening influences the speed and cost of cross-border mergers and acquisitions. The key monitorable will be whether this regulatory shift leads to a higher volume of India-UK joint ventures or faster execution of large-scale projects. Additionally, market observers will watch for any further adjustments by the Bar Council of India that might either expand or restrict this access, as this will determine how competitive the legal services market remains for domestic and international firms.