UK-India trade deal doesn’t include legal services

The recently announced free trade agreement (FTA) between the UK and India has sparked disappointment among legal professionals due to the absence of provisions for legal services. The Law Society of England and Wales warns that this omission represents a significant missed opportunity for both economies. As the world's second-largest provider of legal services, the UK sector contributes £57.8 billion annually, supporting approximately 526,000 jobs which equates to 1.6% of the entire UK workforce. With India positioned to be the world's third-largest economy by 2050, the trade deal was anticipated to enhance UK exports to India significantly.

Law Society president Richard Atkinson expressed mixed sentiments, saying “We welcome the UK government’s achievement as a marker of much improved trade arrangements with India but are disappointed to see that the UK-India FTA has been agreed without reference to legal services.”

Atkinson further articulated the consequences of this oversight by stating, “This is a missed opportunity for a significant breakthrough in terms of market access for lawyers in both India and the UK.” He emphasised that legal services act as an enabling sector, facilitating trade and investment decisions across various industries. He urged the government to bolster support for legal services trade between the UK and India, highlighting, “A deal including the legal services sector has the potential to reap massive economic benefits for both countries and would have been highly beneficial for members working with the Indian legal profession.”

Currently, India is one of the last major jurisdictions where foreign lawyers cannot establish a practice, resulting in much India-related legal work conducted outside the country. Atkinson noted, “Greater connectivity with the UK legal services market would allow Indian companies to realise their international ambitions within India at a competitive cost.” He indicated that the presence of UK law firms would not only facilitate international trade but also help nurture a generation of legal professionals in India capable of competing on a global scale.

Moreover, many UK law firms maintain India-specific practice areas and actively engage in cross-border work with Indian entities. Atkinson called for renewed dialogue to stimulate progress on legal services market access, particularly in light of updated regulations announced by the Bar Council of India in March 2023. These regulations remain unaddressed, leaving both Indian and UK legal communities in a state of anticipation for future developments.