Bright horizons
Indian economy is showing consistent signs of growth
The country’s economy received a strong endorsement from UN’s Department of Economic and Social Affairs in May, which in its mid-year update said the world’s economy was forecast to grow by 2.7% in 2024 thanks to improved prospects in the US and developing economies, notably India and Brazil. India’s GDP has grown consistently between 6.5% and 7.5% annually since 2010, and prospects continue to be strong in the coming years. It was also in 2010 that the country had the ninth-largest GDP in the world. Now, as per predictions from the Finance Ministry, India will have the third-largest GDP by 2027.
It is in this optimistic landscape that we look at recognising and awarding the significant and cutting-edge work that Indian law firms carry out for their clients.
Our Cover story this month highlights the top law firms in India across 39 categories including banking and finance, antitrust, M&A, joint ventures and more. As with last year, Shardul Amarchand Mangaldas & Co (SAM) has won the top honour of Law Firm of the Year, winning a total of 17 awards. IndusLaw firmly secured a place in the prestigious Best Overall Law Firms category, which features other top firms such as AZB & Partners, Cyril Amarchand Mangaldas, JSA, Khaitan & Co and Trilegal. India’s top law firms are a class apart, and changes to this exclusive club are a rare occurrence.
Our Intelligence report his month highlights the most recommended international lawyers with an India focus in the International A-List. To determine the top lawyers, India Business Law Journal reached out to seasoned lawyers in India, as well as global in-house legal advisers, who emphasised the need for a deep understanding of India’s intricacies.
India’s M&A market was able to sustain its momentum in the past year after a record-breaking year in 2022. Bain & Co predicts the market sentiment for M&A in India will persevere or see an improvement in 2024. However, Deloitte says this will occur in a tenuous global environment of ongoing high interest rates, macroeconomic uncertainty, regulatory scrutiny and geopolitical risks.
It is in this environment that our International A-List lawyers operate and, to be a sought-after foreign lawyer, clients recommend a profound comprehension of India’s legal system, understanding the needs of Indian clients and fostering strong connections within the Indian legal community.
In What’s the deal?, we reached out to lawyers across the world to share their thoughts about emerging trends in India on the sidelines of preparing research for the International A-List. Lawyers from a wide array of specialisations shared their global perspectives on the risks and opportunities for India’s legal market.
The partners observe that India is poised to become a central hub for growth and innovation in technology, pharmaceuticals, energy, renewables and manufacturing. Many are tipping that India’s economy will receive significant investment in the healthcare, renewable energy, automotive and space sectors.
In our Spotlight article, we shift to the recently introduced draft Digital Competition Bill (DCB). Regulation duplication determines that although the committee overseeing the draft took diligent efforts to resolve conflicts with other legislation, there continue to be overlaps with the existing Digital India Act, FDI policy, etc. Issues that may arise include unintentional differences in interpretation of concepts, principles and definitions. At stake are further inconsistencies, increased compliance costs, and uncertainty for companies.
The author suggests taking a leaf from the book of the European Commission, which has established a high-level group of EU government stakeholders from different departments for its Digital Markets Act, as well as increased co-ordination between ministries, with a clear demarcation of roles with regard to digital markets.
In Vantage point, Narayan Kedia, vice president of legal at Indiabulls Group, writes about the risks of using crowdfunding platforms for raising funds for startups. While raising these funds seems workable, allowing such structures without proper regulation may expose investors to systemic and default risks. High-risk, low-liquidity investments in small-scale companies and startups may also attract uninformed retail investors.
Kedia names investment platforms that invite investment opportunities in startups and small-scale companies, but these are not without a catch. Broad invitations to retail investors violate section 42 of the Companies Act, which sets a limit of 200 persons in a financial year.
The article calls on the markets regulator to keep a close eye on equity crowdfunding platforms and prevent market abuses. This will ensure market stability, transparency, and the protection of investors.
