Reluctance to open the Indian legal market doesn’t sync with economic ambitions: Sapan Gupta at GCAI panel in London

India’s reluctance to open its legal market to foreign lawyers is increasingly at odds with its economic ambitions, said Group General Counsel at ArcelorMittal Sapan Gupta at a panel discussion during London International Disputes Week 2026.

Speaking at a panel discussion, Gupta pointed to the lack of progress on liberalisation reflecting a deeper inconsistency in policy.

“We have opened every other sector including defense and nuclear with some restrictions, but we don't want to open our legal practice. And it just doesn't sync with the aspirations of the nation and the performance of the nation.”

Gupta added that the issue was not merely regulatory delay, but a lack of clarity on whether India intends to open its legal sector at all.

His remarks reflect broader concerns within the legal and business community that India’s regulatory framework has not kept pace with its economic ambitions, particularly as it seeks to position itself as a global hub for investment and dispute resolution.

Despite recent rules issued by the Bar Council of India (BCI), speakers said that the legal market remains effectively closed in practice.

The comment came at a session hosted by the General Counsels’ Association of India titled Dispute Resolution 2.0: Arbitration, Mediation & Technology in a Digital Economy, part of its Two Nations, One Legal Future: India–UK Partnership 2026 conference on Friday in London.

Mahesh Agarwal, Managing Partner at Agarwal Law Associates, pointed to structural constraints within existing legislation that continue to limit foreign participation.

“The problem in India is that while generally we would want foreign lawyers to be able to practice in India for international law or for foreign clients, there has to be a legislative change. As of now, the legislation is virtually barring foreign lawyers from practicing in India."

He added that while the Rules permit limited entry for non-litigation work, this remains narrowly defined.

"The restriction is that a foreign lawyer cannot operate in India and advise on Indian law. He cannot operate in India and advise Indian clients. So there are major restrictions. All you can do is come for non-litigation work, kind of for mergers, acquisitions, advising, etc, but that also for foreign law,” he noted.

He said that the recent reforms fall short of meaningful liberalisation.

“So Indian market, though the rules say is not really opened up. Until and unless there is a proper amendment by the legislature, it is going to be a difficult scenario."

Concerns over regulatory ambiguity were echoed by Arbitration Bar of India (ABI) President and Senior Advocate Gourab Banerji, who described the 2025 framework as unclear and internally inconsistent.

"The 2025 rules...is as clear as mud. You don't know what it is. And what has made it worse, is the number of clarifications which have come. Those clarifications have come in very unusual circumstances, in the sense that they seem to be connected to some particular events and instances," he said.

“You have rules which are unclear, you have clarifications which are unclear,” he added.

Banerji also pointed in particular to the absence of a clear carve-out for international arbitration, an area where India has been seeking to expand its global footprint.

Additionally, Banerji highlighted a conceptual contradiction in the rules governing foreign lawyers’ participation in arbitration proceedings.

“It is difficult to say that a lawyer who cannot advise can argue on Indian law, explain Indian law in arguments for the arbitrator to decide on Indian law,” he said.

The panel was moderated by Shivani Sanghi, Partner at Bryan Cave Leighton Paisner and Sherina Petit, Partner and Head of International Arbitration and the India Practice at Stewarts Law.

The panel formed part of a wider dialogue on the future of the India–UK legal partnership, which emphasised the need for modern, globally aligned legal frameworks to support cross-border trade, investment and dispute resolution.