HOWZAT

Does it matter? Are the global players not already exploiting India-related work from positions offshore? Indeed, Clifford Chance, the international giant, runs a capital markets unit from its Singapore office that devotes itself solely to India-related work. Linklaters, its "magic circle" counterpart, spreads its India group over four offices – London, New York, Hong Kong and Singapore. Allen & Overy, another magic circle player, is reported to be making a push, having recently advised the lead arrangers on a $3 billion financing for Tata Motors.

On the US side, White & Case is reported to have at least three partners who work on India-related matters exclusively, while Dorsey & Whitney, which is Minneapolis-based, has at least a five-partner India group. In fact, it is thought that all the top-10 law firms on both sides of the Atlantic have launched India groups of some description.

The London office of Hildebrandt, the US-based market analysts, recently published a report on the India legal profession landscape. According to that research: "Despite the ban on foreign firms setting up offices in the country, India-related matters are providing significant work opportunities that have led US and UK firms to build India practice groups, offering international legal advice on inbound and outbound matters. US and UK law firms are also increasingly forming close referral and co-operation agreements with Indian firms."

Getting the teams of local lawyers on the ground to deal with that rising workload once the practice rights regime is liberalised might be more difficult than originally anticipated by the global law firms.

The greatest deal volume is in-bound and out-bound mergers and acquisitions as both sectors have grown considerably over the last few years. Large Indian conglomerates, such as the Tata (India’s largest privately owned company) and others, which have recently turned their attentions abroad, are making the type of international purchases that provided legal work on many levels.

Indian practices are already rumoured to be putting their own protectionist measures in place by effectively bonding trainee lawyers for periods of several years on qualification. The deals reputedly contractually require trainees to pay a financial penalty to the firm if they leave to join a global practice within a fixed period.

So, just as one hurdle blocking the path of international legal practice is on the verge of crumbling, another is erected. As the Raj learnt over many years, nothing is easy in India.

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