It is a common phenomenon in India that prior to liberalization of any sector, there has been widespread opposition and your Ministry is well aware of that situation. An example is the insurance sector wherein employees of some Indian insurance companies had gone on strike in the wake of liberalization of the insurance sector. As of date, all the
insurance companies have been operating in a highly competitive and level playing field thereby ensuring convenience to the end consumer at affordable rates. The legal profession would also prosper in a similar manner in the years to come once the sector opens. If one looks carefully at all those countries which opened its door to foreign lawyers, one would see that the lawyers specially at the major firms have always been very sceptical of the opening of services since they are the most affected. It is typical reaction in all industries which opens up with globalisation.

We would like to highlight that the Ministry of Commerce ought to play a neutral role and not to give preferences to the group of law firms opposing the entry of foreign law firms. It was glaringly felt that during your meeting with the heads of law firms on 17th October 07, members of firms opposing entry were given much more opportunity to speak and even give power point presentation on this issue. Further, if you look at the JETCO committee or other committees of your Ministry dealing with the issue of Foreign Lawyers Entry, it comprises of mainly lawyers opposing such moves.

Our friends in the legal fraternity have expressed various apprehensions towards the entry of foreign law firms. We will discuss these in brief and our arguments against the objections raised would shed more light on the matter.

It was claimed that the legal profession in India at present does not demand the entry of foreign law firms and the discussion to allow them was part of a hidden agenda with the Ministry of Law and the Prime Ministers office. It is worrying to notice that India’s commitment to the WTO to liberalize the services sector received a passing reference by members of the legal fraternity opposing the entry of foreign firms. In our opinion it is only fair and in the interest of reciprocity that foreign firms be allowed to practice in India. Indian law firms are allowed to open offices and practice in many jurisdictions. The entry of foreign firms would go a long way to enhance the competence of legal professionals in India. In that respect any competition in the legal service sector must be both sought and welcomed. Moreover a significant factor is that since India is a responsible and prominent member country of the multilateral trading system, India must endeavour to abide by its commitment to the WTO.