The Law Society remains optimistic that sustained trade negotiations with the Indian government will eventually open the country’s legal market to English law firms, its vice-president John Wotton said this week.

Wotton’s comments came after Veerappa Moily, Indian government minister for law and justice, told the Indian parliament last week that ‘at present there is no proposal to allow foreign law firms into the country’.

But Wotton said: ‘I am confident that Indian markets will open up over time as a result of trade negotiations. Law is of course part of that picture.’

Wotton visited India earlier this month alongside Law Society head of international Alison Hook, for negotiations with Indian government officials – including Moily – and Indian bar leaders.

‘On the basis of discussions we have had with Dr Moily, we are encouraged to believe that conditions will in due course be created to make entry of foreign law firms possible,’ he said. ‘We will continue to discuss with ministers, officials and bar leaders the great contribution that foreign law firms – and English law firms in particular – can make in serving the interests of business in India, and increasing the opportunities for Indian lawyers without impacting upon the work they currently undertake.’

The Law Society and a number of City law firms have been pressing the Indian government for years to allow foreign lawyers to practise in India.

The Indian market appeared to be moving towards liberalisation in December 2008, when the Indian government passed a law allowing the formation of limited liability partnerships by Indian law firms, and, once regulations were passed, foreign firms. Magic circle firm Clifford Chance signed a ‘best friends’ deal with Indian magic circle firm AZB shortly afterwards; national firm Beachcroft entered into a joint venture with Indian firm Khaitan Jayakar Sud & Vohra. A number of other UK firms have alliance or ‘best friend’ offices in India.

But in December 2009, the Mumbai High Court ruled in Lawyers Collective v Union of India that legal advice outside litigation practice was still covered by the ban on foreign lawyers enshrined in the 1961 Advocates Act.

In July, Clifford Chance senior partner Stuart Popham visited India as chair of trade body TheCityUK. On the day the delegation arrived, Moily was reported in Indian newspaper

The Financial Express as saying that there was ‘no question’ of Indian lawyers accepting competition from foreign lawyers overnight.