Over recent months, a notable shift has taken place in the global legal landscape as top-tier US and UK law firms have taken steps to strength their presence in India. This trend has formed in response to sweeping regulatory reforms, mega-deal pipelines and emerging strategic positioning in high-growth economies.
In a landmark move on the 14th May 2025, the Bar Council of India (BCI) approved amendments enabling foreign law firms to open offices in the country to handle non-litigious transactional work and India-seated arbitration matters, under a regulated licensing regime. Driven by explosive economic growth, India is now one of the fastest-growing major economies, projected to outpace most global markets. At the same time, post-COVID shifts in global supply chains are positioning India as a key hub for manufacturing and services, generating demand for outsourcing agreements, technology transfers and cross-border trade contracts.
Multinational clients are also placing pressure on firms to establish a local presence as speed, compliance and cultural understanding increasingly require direct presence, rather than managing India-facing transactions from London or Singapore and liaising with third-party local counsel. Against this backdrop, the regulatory change represents the most significant liberalisation of India’s closed legal sector in decades and has been broadly welcomed by the profession. For example, CMS’ new strategic partnership with Indian full-service firm INDUSLAW enables CMS to establish a local foothold while offering INDUSLAW global connections. This reflects the new rules that, unlike the previous ad hoc collaborations, let foreign firms establish a more structured local presence to advise on foreign law and international matters.
However, this does not come without risks. The BCI has recently cautioned CMS INDUSLAW, questioning whether its collaboration with a foreign firm violates the new framework by marketing itself as a unified cross-border platform without proper registration. Although the firm suggests the BCI has misinterpreted the arrangement, it demands full details on the partnership, warning that leaders could be held personally liable in the event of non-compliance. As a result, firms are proceeding carefully, balancing regulatory uncertainty and operational costs. Nonetheless, those that establish an early foothold stand to gain a significant competitive edge as India’s booming sectors, such as technology, energy, manufacturing and private equity, are fuelling a surge in (inbound and outbound) investments, M&A activity and regulatory work, creating a larger role for international law firms.
Consequently, for global firms, the expansion into India is not merely opportunistic, but represents a significant long-term growth strategy to secure relevance in one of the world’s most dynamic legal markets. However, progress is expected to be slow as India’s market remains only partially open to foreign firms.
Written by Jemima Lines
Sources: Ziplaw, global legal post, littlelaw, CMS
