Friday 14 December 2018 10:52:27 AM
Skip to main content
Ministry of Commerce and Industry
Government of India
Back to Home
Several initiatives taken for enforcement of IPR laws: DIPP Secretary
Growth of sector
Legal Services Market
Significance of the sector to Indian Economy-
Proper implementation of laws and regulations requires a well-functioning legal service sector. With increasing globalization and constant policy reforms in India, more and more companies are willing to setup their business in India which creates a demand for domestic legal services. Increased level of globalization and international trade has helped the Indian legal services sector to expand as there is more requirement of documentation, legal advice on setting up and structuring the business. The sector is one of the most restricted sectors both in India as well as globally.
Owing to the expertise of professionals in domains such as arbitration, competition law, environmental law, international trade law, outbound foreign direct investment and restructuring and insolvency, Indian legal firms have performed well.
Growth of sector
The Indian legal services market expanded during 2007-12, at a growth rate of 16 per cent, to reach a value of USD6.8 billion in 2012. The market is expected to grow at a CAGR of 14.9 per cent between 2015 and 2018, and could witness regulatory changes simultaneously, due to the central government's intention of liberalizing the sector.
Indian export growth drivers
India has one of the largest pool of lawyers globally with more than Six Lakhs (6,00,000) lawyers. The service providers are individual lawyers, small or family based firms.
Indian lawyers have acquired expertise in emerging legal disciplines like mergers and acquisitions, infrastructure financing, public private partnership, etc.
The Indian legal system has a high degree of compatibility, with that of the U.S. and the U.K.
Presence of a skilled and English-speaking workforce
Legal Services Market
Indian legal firms can tap developed markets such as the U.S. and the U.K. as well as developing markets like France, Singapore, etc.
France and Singapore are expected to emerge as significant legal markets, which can be leveraged by Indian firms
Some countries in Africa are expected to become important export hubs, as they have developed their laws based on Indian statutes. This mode has considerable potential, as the global LPO industry has entered into a high growth phase and Indian professionals are in demand due to their proficiency in English, similarity between Indian and other countries’ legal systems and relatively lower labor costs.
Demand from foreign firms is anticipated to increase on account of liberalization of Indian legal services, which is expected to take place in a phased manner. Also, the economy is poised to grow, which could result in an increased amount of FDI, flowing into India.
India's consumption-led economy along with series of radical reforms continues to make the country a highly attractive investment destination in the short- to medium-term.
India's economy is expected to grow to a staggering US$5.6 trillion by 2020 at current market prices, up from US$1.7 trillion in 2010–11. This continued growth should help law firms to prosper, driving a more profitable industry.
India will continue to be an attractive destination for law firms from North America and Europe. Their success in this regard will have a major impact on the potential benefit and future viability of their internationalization strategies.
Indian Industry as a consumer of legal services, students looking for better prospects and knowledge could benefit from legal sector opening
Lawyers into litigation too would gain as foreign law firms to seek their services for matters related to litigation.