The long winding journey of entry of foreign law firms has finally concluded on a successful note with the Bar Council of India notifying the Rules framed in 2023. Soon after this significant development, NITI Aayog CEO BVR Subrahmanyam, referencing IMF data, stated that India has overtaken Japan to become the world’s fourth-largest economy. These are strategic outcomes of a consistent focus by the Government to improve India’s economy and provide a level playing field for foreign investment. The forecast of economic growth, though saw a slight dip and continuous reforms are being urged.
Entry of Foreign Law Firms – The Bar Council of India (BCI) has enforced the amended “Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022, earlier gazetted on 10th March, 2023.” (as reported by Asia Law Portal here) with the primary objective of safeguarding the interests of Indian advocates while regulating the practice of foreign law and international law in India. The Rules and Regulations comprehensively address the principle of reciprocity, ensuring equitable treatment and corresponding obligations for all parties involved. The amended regulations are strategically designed to provide structured opportunities for foreign lawyers to practice foreign law and international legal matters in India, strictly limited to non-litigious areas under a clearly defined regulatory framework that prioritizes the rights and interests of Indian legal professionals. Foreign lawyers and law firms are expressly prohibited from engaging in litigation practice, appearing before Indian courts, or practicing Indian law in any capacity. Foreign lawyers seeking temporary entry for legal advisory under the “Fly-In Fly-Out” (FIFO) provision must comply with strict guidelines limiting their stay to 60 days per 12-month period. Objective and aim is to make India a premier hub of International Arbitration which would benefit Indian Advocates and Indian Law firms by creating advantageous opportunities for them. Foreign lawyers and law firms shall be registered in India by the Bar Council of India only upon obtaining a No Objection Certificate (NOC) from the Ministry of Law and Justice and the Ministry of External Affairs.
United Nations Report – The World Economic Situation and Prospects as of mid-2025 updates the World Economic Situation and Prospects 2024 report released on 9 January 2025 (as reported by Asia Law Portal here). The report is prepared by the Global Economic Monitoring Branch in the Economic Analysis and Policy Division of the United Nations Department of Economic and Social Affairs. As per the report, the world economy is now forecast to grow by 2.4 per cent in 2025 (a decrease of 0.4 percentage points from the forecast in January). The downward revisions in growth forecasts are broad-based, affecting both developed and developing economies. Weakening global trade growth and investment flows are compounding the slowdown. Many trade-reliant developing countries face mounting challenges from reduced exports, lower commodity prices, tighter financial conditions, and elevated debt burdens. India’s economy is forecast to grow by 6.3 per cent in 2025, down from 7.1 per cent in 2024. Resilient private consumption and strong public investment, alongside robust services exports, will support economic growth. While looming United States tariffs weigh on merchandise exports, currently exempt sectors—such as pharmaceuticals, electronics, semiconductors, energy, and copper—could limit the economic impact, though these exemptions may not be permanent. In India, inflation is projected to slow from 4.9 per cent in 2024 to 4.3 per cent in 2025, staying within the central bank’s target range. The Reserve Bank of India, which had kept its policy rate steady at 6.5 per cent since February 2023, began its easing cycle in February 2025. Despite a projected moderation, India remains one of the fastest-growing large economies, supported by resilient consumption and government spending.
ASEAN-India Trade in Goods Agreement – India hosted the 8th meeting of the AITIGA Joint Committee to review the ASEAN-India Trade in Goods Agreement (AITIGA). The event was conducted in a hybrid format. The committee’s primary objective was to advance the ongoing review of the AITIGA, aiming to modernize the agreement to be more effective, user-friendly, and conducive to trade. Five out of eight Sub-Committees (SCs) under the AITIGA JC also conducted hybrid meetings on the margins of the 8th AITIGA JC. All previous meetings have been covered by Asia Law Portal, with the last update here.
ADB Recommends Market Reforms – India needs to focus on factor market reforms like land and labour to propel India’s growth to a double-digit trajectory, ADB Chief Economist Albert Park has said. “There are still concerns that the basic factor markets like land and labour in the formal sector of unemployment in India are still small. So, you really want to formalise those,” he told PTI in an interview. The factor market reforms include land, labour, energy, and access to credit, among others, which are critical factors for production. Talking about other reforms, Park said further regulatory ease and ease of doing business and deregulation of tariffs by simplifying and reducing them will help increase India’s share in the global value chain. “India needs to improve exports in the manufacturing intensive sectors like electronics, textiles etc are still much more limited and not growing as fast as other more dynamic parts of Asia,” he added. To achieve double-digit growth, Park said, India is doing well on various parameters, and it is the fastest growing economy in Asia, but achieving over 10 per cent growth would require huge investment in the infrastructure sector and global frontier technologies to improve efficiency and productivity.
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