Differences of opinion between India's legal services sector and its UK counterpart became clear this month. Writing in India's Economic Times, Lalit Bhasin of Bhasin & Co, speaking in his capacity as President of the Society of Indian Law Firms (SILF) set out his opposition to opening India's legal market to foreign firms.

Opposition

Bhasin's, SILF - supported by Bar Council India (BCI) - have previously made their staunch position clear, "SILF is strongly opposed to the entry of foreign law firms into India, by any means, direct or indirect, implicit or explicit, surrogate or otherwise by whatever name called including but not limited to referral arrangements, co-operation agreements, best friend arrangements or the like."

"Best friends"

Despite opposition, controversial "best friend" arrangements are in place between magic circle and local firms. While such arrangements don't technically breach BCI rules, opponents fear market entry via the back door.

Those in favour of change argue deregulation will improve M&A transaction standards while meeting India Inc's existing demand for international deal making. Spin offs include improved training, administration, and marketing know-how, as Indian firms can't currently advertise and market themselves.

Profession versus business

Bhasin's stance is built on a belief that the industry is a profession, not a business, "if it is a business, it can be acquired, merged, amalgamated, taken over". Ironically this view was shared by many in the UK legal industry until relatively recently.

While this sounds like a protectionist statement, he goes on to debunk the popular theory that Indian clients are demanding international legal expertise. Without giving real evidence he talks of an International Bar Association conference in March, at which Indian corporate's stated that Indian legal services were "second to none".

One-way traffic

One point that clearly rankles is the fact that UK will not recognise Indian law degrees, making it impossible for Indian lawyers to practice in the UK. Seen as unfair, this position gives the impression that the UK wants to plunder India for its own ends, without sharing opportunities. Bhasin skilfully suggests that the only demand comes from Western law firms looking for new revenue streams and not India Inc.

With such polarised views, striking a balance or finding a compromise that suits both sides will be difficult. As time passes and entrenched views fail to soften, UK legal sector must decide to continue the fight, agree to concessions or look elsewhere.

Lalit Bhasin's article can be read in full here.