UK lawyers have rued the omission of legal services from the free trade agreement (FTA) announced between the UK and India on Tuesday (6 May), despite years of lobbying for access restrictions to be relaxed.

While the UK and Indian governments underlined the significance of the deal, which reduces tariffs and improves market access for some service sectors, business lawyers and their representative bodies were disappointed that legal services weren’t included given that India remains one of the few major jurisdictions in the world where the establishment of foreign lawyers is not permitted. 

Law Society president Richard Atkinson said: “This is a missed opportunity for a significant breakthrough in terms of market access for lawyers in both India and the UK. Legal services is an enabling sector, supporting other sectors in their own trade and investment decisions and operations.”

He added: “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. India is one of the last large jurisdictions in the world in which the establishment of foreign lawyers is not possible, meaning a lot of India-related legal work currently takes place outside of India.

According to India’s The Economic Times, the UK agreed to remove legal services from the deal in return for New Delhi dropping its demands in relation to post-study work visas for students. This reflected “mutual sensibilities”, the newspaper reported, given that “certain quarters in the legal fraternity are against any easing in the sector for foreign players”. 

Sherina Petit, head of the India practice at Stewarts, acknowledged the deal was a “welcome development amid global trade uncertainties”, which would drive increased legal work as trade volumes grow.

Like Atkinson, she noted that India’s long-standing refusal to open its legal market means much of its legal work will continue to be handled offshore, rather than within India.

She said the FTA had presented “a rare opportunity for the UK to position itself ahead of Singapore – often the preferred jurisdiction for India-related cross-border legal matters – and establish a stronger foothold in one of the world’s largest legal markets”.

She argued it would have encouraged collaboration, rather than competition, between UK and Indian law firms.

Andrew Cannon, who heads Herbert Smith Freehills’ India disputes group, agreed with the Law Society that the deal would enhance commercial activity and that the absence of legal services represented a lost opportunity to create a more integrated and globally competitive legal framework.

The Law Society’s Atkinson called for renewed discussions on market access plans, which he said “currently remain in limbo”. This is despite a perceived breakthrough in 2023 when the Bar Council of India agreed liberalisation measures and then signed a Memorandum of Understanding with the Law Society and the Bar Council of England and Wales.

Expressing a similar ambition, Barbara Mills KC, chair of the Bar Council, said: “Our aim is not – and has never been – to compete with Indian law firms but to complement and work alongside them to enhance the international arbitration landscape.

“This was a once-in-a-lifetime opportunity to recognise the importance of legal services to the UK economy and realise the mutual benefits of enhancing the quality and efficiency of legal services in both the UK and India.”

Announcing the deal, the UK government stated that trade with India was expected to increase by £25.5bn. Bilateral trade between the UK and India reached £42.6bn in 2024, accounting for 1.9% of exports and 1.8% of imports. However, India is projected to become the third-largest economy by 2050, and the UK-India trade deal could potentially double UK exports.