Dear Sir,
As the Reserve Bank of India continues to liberalize its regulations, the country is entering an exciting phase in terms of Indian companies investing abroad. For lawyers, this is an intellectually stimulating time.
In the year ahead, there are likely to be a number of areas in which considerable movement can be expected.
The food business will be much streamlined and the Food Act implemented. The consolidation of laws related to food has been ongoing and will put India on a par with international standards for packaging and food declarations.
Streamlining these laws will lead to a boom in investments in the food and beverage sector, restaurants and eateries. Already, a number of international brands are looking to set up shop in India.
The outsourcing business will also get a boost, particularly the legal process outsourcing sector. The huge potential of this industry has already been tapped, although it is worth considering whether the opening of the Indian market to foreign law firms will get in the way.
The pie may just be large enough for both to coexist. Allowing foreign firms to enter India would be a huge step for India and would benefit Indian corporate lawyers. Most of the leading firms in the world have already set up shop in some form.
The infrastructure sector will also see growth this year. Infrastructure is necessary for India to maintain sustainable growth. Emphasis will likely be placed on big airport projects, state connectivity and smaller cities – where big manufacturers have their plants.
Another sector likely to get a lot of attention is health care.
Health-based initiatives and businesses will likely gain momentum in 2008 and 2009.
While these sectors are likely to get a considerable amount of attention in the next 12 months, there is one area that would benefit from more regulatory attention: Indian companies should be encouraged to act in a more responsible fashion.
Corporate responsibility should be a mandatory requirement for Indian companies and MNCs, whether through better environmental protection or social business plans.
Shraddha Ray Menon
Legal counsel
Coca-Cola
