India_ and Investment Potential in India

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					          India, and Investment Potential
                       in India


               The Center For American and International

                                                 By :
                                          Gautam Mahajan
                              President - Inter-Link Services Pvt. Ltd.
                                             June 13, 2006

Inter-Link Services Pvt. Ltd. Tel: 011-26922006, 26831226; Fax: 011-26929055; E-mail: /

1.   General Business Tips

2.   India, and Investment Potential in

3.   Foreign Lawyers and Legal Services
     in India: Frequently Asked Questions
               DISCUSSION POINTS

1. General Business Tips
     •     General Business Tips
     •     American Companies in India
     •     Legal Opportunities

2.        India, and Investment Potential in

3.         Foreign Lawyers and Legal Services   in
         India: Frequently Asked Questions
    General Business Tips
• From the American Business Experience
  in India: Lessons from successful
  American companies:
  – Know the rules and the law and follow them
  – Conduct rigid due diligence
  – Do not get guided by “quick methods” or
  – Avoid un-ethical practices
  – Hire a good knowledgeable consultant on
             American Companies in India
    Top 5 American employers in India 2 years ago:
    General Electric:       : 17,800 employees
    Hewlett-Packard         : 11,000 employees
    IBM                     : 6,000 employees
    American Express        : 4,000 employees
    Dell                    : 3,800 employees (today 10,000, growing to 20,000)

   General Electric (GE) with $80 Million invested in India employs 16,000 staff,
    1,600 R&D staff who are qualified with PhD‟s and Master‟s degrees.

   The number of patents filed in USA by the Indian entities of some of the MNCs
    (upto September, 2002) are as follows: Texas Instruments - 225, Intel - 125,
    Cisco Systems - 120, IBM - 120, Phillips - 102, GE - 95.

   Staff at the offices of Intel (India) has gone up from 10 to 1,000 in 4 years,
    and will reach 2000 staff by 2006.

   GE's R&D centre in Bangalore is the company's largest research outfit outside
    the United States. The centre also devotes 20% of its resources on 5 to 10 year
    fundamental research in areas such as nanotechnology, hydrogen energy,
    photonics, and advanced propulsion.

   It is estimated that there are 150,000 IT professionals in Bangalore as against
    120,000 in Silicon Valley.
        Legal Opportunities
• Help Indian companies wishing to enter
  USA, China etc.
• Help Indian companies and lawyers in
  collaborative projects with American
  companies outside India
• Buy legal and paralegal services from
  India at low rates.. Example is GE
• Send lawyers to India acceptable to the
  Indian bar rules or willing to pass the
  Indian bar exam
"There are lots of opportunities to use [foreign]
lawyers in place of outside counsel or other
lawyers at a lower cost structure," says
Suzanne Hawkins, senior counsel at General
Electric Co. For two GE businesses -- GE
Plastics and GE Consumer Finance -- savings
from those lower rates are adding up. GE
began adding lawyers and paralegals to its
office in Gurgaon, India, in late 2001. It now
has eight lawyers and nine paralegals there
and has saved more than $2 million in legal
fees that would otherwise have been spent on
outside counsel, according to Hawkins.

Jennifer Fried
The Recorder
August 25, 2004
1.       General Business Tips
2.       India, and Investment Potential in
     –   Foreign Direct Investment in India
     –   An overview of Indian Economy
     –   Investing in India – Entry Routes
     –   Foreign Direct Investment: Policy
     –   India‟s Competitive Advantage
     –   Investment Opportunities
3.       Foreign Lawyers and Legal Services
         in India: Frequently Asked Questions
        Foreign Direct Investment in India
   Fourth largest              Largest democracy
 Economy (PPP) - A             – political stability
     safe place                 & consensus on
   to do business                    reforms

                                          Liberal &
reservoir of
                                - High growth rate
   An overview of Indian Economy

• Economic Performance

• Foreign Trade

• Investment

• Mature Capital Markets

• A well developed banking system
 An overview of Indian Economy

Economic Performance

o Sustained economic growth
   o   Average last 10 years               6.5%
   o   2004-05                             6.9%
   o   Forecast up to 2006-07        >7.0%
   o   Forecast till 2050 – Goldman Sachs 5 % p.a.

o Services share in GDP over 50% (52.4% share in
  GDP in 2004-05)

o Manufacturing sector grew at 8.8% in 2004-05 (17.4%
  share in GDP in 2004-05)
   An overview of Indian Economy

Foreign Trade
o Merchandise exports grew by 25% in 2004-05, now
  US$80 billion
o Imports grew by 36%, now US$106 billion

o Foreign Investment – over US$14 billion in 2004-05
  (FDI US$5.5 billion, FII US$8.9 billion)

Mature Capital Markets
o NSE third largest, BSE fifth largest in terms of number
  of trades
Goldman Sachs Report of 1 October,
2003 –
"Dreaming with BRICs: The path to 2050"

India's GDP will reach $ 1 trillion by 2011,
$ 2 trillion by 2020,
$ 3 trillion by 2025,
$ 6 trillion by 2032,
$ 10 trillion by 2038, and
$ 27 trillion by 2050,
becoming the 3rd largest economy after USA
and China.

In terms of GDP, India will overtake Italy by the
year 2016, France by 2019, UK by 2022,
Germany by 2023, and Japan by 2032.
        Economic Reforms - Fiscal

• Rationalization of tax structure – both direct and indirect

• Progressive reduction in peak rates
   o Peak Customs duty reduced to 15%
   o Corporate Tax reduced to 30%

   o Customs duties to be aligned with ASEAN levels

• Value Added Tax introduced from 1st April 2005-
   o only 6 states left

• Fiscal Responsibility & Budget Management Act, 2003
   o Revenue deficit to be brought to zero by 2008
Economic Reforms - Liberalisation of
    Investment & Trade Policies
• Industrial Licensing
  o   Progressive movement towards delicensing and deregulation
       • Licensing limited to only 5 sectors (security, public health & safety
• Foreign Investment
  o   Progressive opening of economy to FDI
  o   Portfolio investment regime liberalised
  o   Liberal policy on technology collaboration
• Trade Policy
  o   Most items on Open General License, Quantitative Restrictions
• Foreign Trade Policy seeks to double India‟s
  share in global merchandise trade in 5 years
     Economic Reforms - Exchange
          Control & Taxation
Exchange Control
• All investments are on repatriation basis
• Original investment, profits and dividend can be freely
• Foreign investor can acquire immovable property
  incidental to or required for their activity
• Rupee made fully convertible on current account
• Companies incorporated in India treated as Indian
  companies for taxation
• Convention on Avoidance of Double Taxation with 65
       Manufacturing Competitiveness
              ‘Made in India’
• Second most attractive destination for manufacturing
   o   AT Kearney‟s FDI Confidence Index 2004

• Indian industry globally competitive in a wide range of
  manufacturing skill-intensive products:
   o   Apparels, electrical and electronics components; speciality
       chemicals; pharmaceuticals; etc.

• Automotive components: Major MNC‟s & their OEMs
  sourcing high-quality components from India
   o   Volvo, GM, GE, Chrysler, Ford, Toyota, Unilever, Cliariant,
       Cummins, Delphi

• Indian companies now having manufacturing presence in
  many countries
   o   Over 55% of approved outward investment by India companies
       in manufacturing activities
                Evolution of FDI Policy

2000-05   More sectors opened ; Equity caps raised in many other sectors
          Procedures simplified

 2000     Up to 100% under Automatic Route in all sectors except a
          small negative list

          Up to 74/51/50% in 112 sectors under the
          Automatic Route 100% in some sectors

 1991     FDI up to 51% allowed under the
          Automatic route in 35 Priority sectors

Pre 1991 Allowed selectively up to

                           FDI Policy Liberalization
Investing in India – Entry Routes

                    Investing in India

                                         Prior Permission
       Automatic Route

    General Rule                    By Exception
    No prior permission             Prior Government
    required                        Approval needed.
    Inform Reserve Bank             Decision generally
    within 30 days of               within 4-6 weeks
    inflow/issue of shares
       FDI Policy Initiatives : 2000-2004
• New sectors opened to FDI
   o   to 26% divestment in 5 years Defence production, Insurance,
       print media - up to 26%
   o   Development of integrated townships up to 100%
   o   e-commerce, ISP with out gateway, voice mail, electronic mail,
       tea plantation -100% subject

• FDI equity limits raised
   o   Private sector banks raised from 49% to 74%
   o   Drugs and pharmaceuticals from 74% to 100%
   o   Advertising from 74% to 100%
   o   Private sector refineries, Petroleum product marketing,
       exploration , petroleum product pipelines – 74% to 100%

• Procedural simplification
   o   Issue of shares against royalty payable allowed
Recent Initiatives : June 2004 onward
• FDI in domestic airlines increased from 40% to 49%.
  Automatic route allowed
• FDI up to 100% allowed under the automatic route in
  development of townships, housing, built up
  infrastructure and construction development projects
• Foreign investment limit in Telecom services increased
  to 74%
• FDI and portfolio investment up to 20% allowed in FM
  Broadcasting. Hitherto only Portfolio investment was
• Transfer of shares allowed on automatic route in most
• Fresh guidelines for investment with previous joint
• A WTO (TRIPs) IPR regime compliant in position since
  2005 – Patents Act amended to provide for product
  patent in pharma and agro-chemicals also.
                       Policy on FDI
• FDI up to 100% allowed under the „Automatic
  Route‟ in all activities except for
  o   Sectors attracting compulsory licensing
  o   Transfer of shares to non-residents (foreign investors)
       o   In Financial Services, or
       o   Where the SEBI Takeovers Regulation is attracted
  o   Investor having existing venture in same field
  o   Sector specific equity/route limit prescribed           under
      sectoral policy
• Investments made by foreign investors are given
  treatment similar to domestic investors
                  Main Sectors with
                FDI Equity/Route Limit
    FDI equity limit-                    FDI requiring prior
    Automatic route                      approval
•   Insurance – 26%                  •   Defence production – 26%
•   Domestic airlines – 49%          •   FM Broadcasting - foreign
•   Telecom services- Foreign            equity 20%
    equity 74%                       •   News and current affairs- 26%
•   Private sector banks- 74%        •   Broadcasting- cable, DTH, up-
•   Mining of diamonds and               linking – foreign equity 49%
    precious stones- 74%             •   Trading- wholesale cash and
•   Exploration and mining of coal       carry, export trading, etc.,
    and lignite for captive              100%
    consumption- 74%                 •   Tea plantation – 100%
                                     •   Development of airports- 100%
                                     •   Courier services- 100%

      Corrected as of December ‘05
             Foreign Technology
             Collaboration Policy
• Foreign technology agreements also allowed
  under Automatic route:
  o   Lump-sum fees not exceeding US$2 Million
  o   Royalty @ 5% on domestic sales and 8% on exports,
      net of taxes
  o   Royalty up to 2% on exports and 1% also permitted
      for use of Trade Marks and Brand name, without any
      technology transfer

• Wholly owned subsidiaries can also pay royalty
  to their parent company

• Payment of royalty without any restriction on the
  duration allowed.
                  India: FDI Outlook
• 2nd most attractive investment destination among
  the Transnational      Corporations   (TNCs) -
  UNCTAD‟s World Investment Report, 2005
• 3rd most attractive investment destination – AT
  Kearney Business Confidence Index, 2004
  o   Up from 6th most attractive destination in 2003 and 15th in 2002
  o   2nd Most attractive destination for manufacturing
• Among the top 3 investment „hot spots‟                         for the
  next 4 years
  o   UNCTAD & Corporate Location – April 2004
• Most preferred destination for services - AT
  Kearney‟s 2005 Global Services Location Index
  (previously Offshore Location Attractiveness Index)
       India’s Competitive Advantage
                Human Capital
• India’s competitive edge - its highly-skilled manpower
  and entrepreneurial expertise
   o   Over 380 universities (11,200 colleges)
   o   1500 research institutions
   o   Over 200,000 engineering graduates
   o   Over 300,000 post graduates from non-engineering colleges
   o   2,100,000 other graduates
   o   Around 9,000 PhDs
• Knowledge workers in software industry increased from
  56,000 in 1990-91 to over 1 million by 2004-05;
• 54% of India’s population under 25 years of age
• India would continue to be surplus in working population
  for a long-time
   o   Would contribute 25% to the additional working population globally over
       the next 5 years.
      India’s Competitive Strengths
               HRD Contd.

Rank out of 102 countries

• Availability of scientist and engineers       3

• Quality of management schools                 8

• Quality of scientific research institutions   20

• Quality of educational system                 36
                                      IT Advantages
                                                       •   IT –ITES Industry
                     IT- ITES Exports                       o   Exports US$17.2 billion in 2004-
                       In US $ Billion                          05, growth of 34% over previous
20                                                          o   2008 exports target : US$60
                                                                billion, to be 35% of India‟s total
                                                       •   High quality standards
14                                  12.8                    o   76 SEI/CMM level 5 companies,
12                                                              two third of world‟s total, are
                          10                                    Indian
10                                                          o   Over 250 of the Fortune 500
                 8                                              companies are clients of Indian
8                                                               firms
6                                                           o   R&D base of over 100 FORTUNE
                                                                500 companies

                                                       •   Investment Opportunities
                                                            o   Collaborative ICT research
0                                                           o   Joint Software development in a
     2000-01   2001-02   2002-03   2003-04   2004-05
                                                                variety of applications
       Recent Infrastructure Initiatives
• National Highway Development Programme to develop
  over 24,000 km of highways
   o   Golden Quadrilateral
   o   NSEW Corridor
   o   Links to ports and State capitals
• Modernisation of airports
   o   Metro and other airports
• Development of ports with private sector
• The Electricity Act, 2003 provides the framework for
  development of power sector
• „Bharat Nirman‟ Programme to develop rural
  infrastructure at an estimated cost of Rs. 1,74,000 crore
  (~US$40 billion)
• Jawhar Lal Nehru Urban Renewal Mission –Rs. 100,000
  crore (US$22 billion)
• Country wide rural connectivity programme to link all
  unconnected village having population of 500 with fair
  weather road undertaken
                 80                                               •   Among the fastest growing telecom
                                                                       o  550,000 km of optical fibre cable

                 60                                      19.25
                                                                  •   2 million Cellular phones added every
                                                                          Among the lowest mobile tariff in
No. in million

                 50                                                       the world

                 40                               19.5            •   Share of private sector 50%
                                                                  •   Tele-density of 10.66, expected to be
                 30                                                   20 in next three years
                                           17.7                   •   New Broad Band Policy announced:
                 20                               28.2
                                                                       o 690,000 connections since April
                 10                                                    o Internet subscribers 6 million
                             2.4     5                                   (March 05)
                       1.5                 10.5
                             3.1     5.5
                  0    1.6                                        •   Investment Opportunities
                      2000   2001   2002   2003   2004    2005          o Setting up manufacturing facilities;
                                                         (up to
                                                          Oct.)         o Supply of hand sets and
                                                                        o Telecom & Value added service.
• Policy
  o   FDI up to 100% is permitted for construction and
      maintenance of roads, highways, vehicular bridges,
      toll roads, vehicular tunnels
  o   Ten year tax holiday for road and highway projects
• Recent Initiatives
  o   Existing road network of 3.3 million kilometers
  o   24,000 km of Highways being developed under
      National Highway Development Programme
       o   billion envisaged Golden Quadrilateral : 5846 kms- 5000 kms
       o   NSEW Corridor: 7300 kms – 784 kms completed, 3691 kms
           under implementation
       o   Investment US$20 billion
• Investment Opportunities
  o   Projects for 12,000 km would be on offer
  o   Many more opportunities in the States
                                            • Policy & Incentive
                                               o   FDI up to 100% is permitted on
                                                   the automatic route in all
                                                   segments except atomic power
     Share of Installed Capacity
                                               o   Ten-year tax holiday for
                                                   generation and distribution or
                                                   transmission and distribution of
                                            • Institutional Reforms
                                  22%          o   The Electricity Act 2003 allows
                                                   trading in power and provides for
                                                   further deregulation;
                                               o   Independent Regulator in most
Thermal                                     • Investment Opportunities
                                               o   Additional capacity required
                                                   100,000 MW till 2012
                                               o   Investment US$120 billion needed
                                               o   Financial closure of over 6000
                                                   MW capacity achieved in last one
• Policy & Incentives
  o   FDI up to 100% permitted for construction and
      maintenance of ports and harbors.
  o   Ten year tax holiday

• Public-private partnership
  o   12 major ports, 185 minor ports
  o   14 private/ captive projects with investment of US$
      600 million completed
  o   24 projects with investment of US$1.6 billion under

• Investment requirement of US$22 billion to
  develop maritime sector
  o   Ports & Shipping
  o   Inland waterways
                     Special Economic Zones

• Policy
                                                          New Law on
   o Duty free zones, deemed foreign                      SEZ enacted

    o FDI up to 100% permitted in
       almost all manufacturing activities
                                             • Incentives
    o Transfer of goods from DTA to             o For developer: Income tax exemption
       SEZ treated as exports,                      for a block of 10 years in 15 years

                                                 o For units: 100% Income Tax
    o Units to be net foreign exchange              exemption for first 5 years, 50% for
       earner within 5 years. No export             next 5 years and 50% of the ploughed
       commitments                                  back export profits for next 5 years

    o No limits on DTA sales                     o Exemption from indirect taxes; excise,
                                                    sales, services tax, etc.
    o Can be set up in the public,
       private or joint sector                   o Freedom to raise ECB with out any
                                                    maturity restrictions
    o Single Window Clearance
           Special Economic Zones
• 11 Special Economic Zones are functional
  o   SEEPZ Mumbai, Kandla, Cochin, Chennai,
      Visakhapatnam, Falta, NOIDA, Surat, Salt Lake,
      Indore and Jaipur
  o   Over 800 functional units employing over 100,000
  o   Exports of US$4 billion in 2004-05
• 42 new Special Economic Zones have been
  approved and are under establishment
  o   Many have participation with State Governments and
      Private Sector
• Major Industries in Special Economic Zones
  o   Gems & Jewellery, Electronics & Hardware, Software,
      Textile & Garment, Engineering Goods, Sports
      Goods, Leather Products, Chemicals & Allied
          Public Private Partnership

• Infrastructure projects might not be financially viable on
  their own;

• Public Private Partnership to bring in private sector
  resources and techno-managerial capabilities;

• „Viability Gap Funding‟ for
   o   Roads, railways, seaports, airports;
   o   Power
   o   Water supply, sewerage, solid waste disposal in urban areas;
   o   International convention centres.

• Funding in the form of capital grant, Operation &
  Management support, interest subsidy, etc.

• Support linked with predefined milestones.
                    Food Processing
• Third largest producer of food items
   o   Largest milk producer
   o   Largest livestock population;
   o   2nd largest in fruits & vegetables

• Opportunities in food processing sector
   o   50% of household income spent on food items
   o   With increasing income levels and urbanisation fast growth in demand
       of processed food expected; over 250 million strong middle class
   o   Low levels of value addition in food sector: only 7%

• New Integrated Food Law being enacted

• Investment of US$ 28 billion required to raise food
  processing from 2% to 8-10%.

• Investment opportunities in
   o   Processing of fruit & vegetable, meat, fish & poultry, milk products,
       packaged food & drinks.
   o   Establishing infrastructure, cold chain, etc.
   Incentives for the Development of
      Industrially Backward Areas
• A special package of incentives to promote
  industrialization of industrially backward regions
   o   North Eastern states, Skim, Jammu & Kashmir,
       Uttaranchal and Himachal Pradesh

• Incentives
   o   100% Income Tax Exemptions for 10 years
   o   Excise Duty Exemptions for 10 years
   o   Transport Subsidy for transportation of raw material
       and finished products,
   o   Investment Subsidy (50-90%)
   Governance and Regulatory System

• Central, State and Local levels of Government with
  their specified powers and responsibilities seen as
  complicated in regulatory administration by investors

• 11.9% of Senior Management‟s time spent in dealing
  with Government agencies
  (Source: World Bank‟s Report - India Investment Climate
  Assessment, 2004)

• World Bank‟s Report „Doing Business in 2006‟
   o   71 days required to set up a Company and start business –
       Incorporation of Company and PAN/TAN allotment taking most
   o   Paying taxes: 59 transactions taking 264 hours in a year
   o   Closing a business: time taken 10 years
              Governance - Initiatives
• Major e-governance initiatives undertaken at Central and
  State level
• National e-Governance Action Plan
   o   Projects being taken up in Mission mode at Central and State
   o   Integrated services projects for services across Departments.
   o   MCA-21 - Ministry of Company Affairs, to cover all Registrar of
       Companies by June 2006
• e-Biz project being taken up by the Department of IPP
   o   To set up a web enabled portal to provide for the services at the
       Central, State and Local level during the entire life cycle of
   o   To begin with a pilot project covering 25 services in four states
   o   Project capable of rapid upscaling to cover other services and
       extend to other areas

• Right to Information Act for greater transparency in
  public administration
         Investment Opportunities

• Development and management of infrastructure

• Food processing, including logistic and support
  services, development of cold chain

• Manufacturing – relocation into India

• R&D – leveraging on abundant skilled

• IT & ITES, Software as well as hardware
1. General Business Tips
2. India, and Investment Potential in
3. Foreign Lawyers and Legal Services in
  o Frequently Asked Questions
  o Judgment of Bombay High Court
   Foreign Lawyers and Legal Services in
     India: Frequently Asked Questions
1.Can I give advice on USA legal issues to Indian
  No. (see below)
2.Can I give advice to Indian companies in India on
  Indian issues?
  No. Please refer to the attached extract of a Bombay High Court
  Judgment attached
3.If I have an associate law firm in India, what can
  my partners do or not do when they come to
  They can only provide inputs to the Indian firm. They can be
  employed by an Indian firm. They can (if qualified) enroll but that
  is a difficult process requiring eligibility, qualifications and
  reciprocity.                                                     Cont………
 Foreign Lawyers and Legal Services in
   India: Frequently Asked Questions
4. Can I set up a rep. office in India? If yes, What
   am I allowed to do and not do?
  Yes, but not much at all. Liaison and no commercial
  business (same judgment).

5. Is my legal degree recognised in India?
  No. In most cases of US degrees. Some may be
  recognised (like Oxford degree) but you‟ll need to check
  with the Bar Council of Delhi which ones are covered (if
  any) from the U.S.

6. What do I have to do be a solicitor in India?
  This is a complex question. Probably not allowed.
 Foreign Lawyers and Legal Services in
   India: Frequently Asked Questions
7. What do I have to do if I wish to appear in
   an Indian court?
   Enroll as an advocate.

8. How is the law on the above likely to
   change and when?
   Some change and a minor easing is likely in this year or
   over the next years but it is likely to be cosmetic.
         Extract of a Bombay High Court
                                     ORIGINAL SIDE
                              WRIT PETITION NO. 1526 OF 1995

Lawyers Collective                                             …Petitioner


Bar Council of India & Ors.

OCTOBER 4 & 9, 1995

"In our view, considering the aforesaid quotations from the New York Judiciary
    Law and Halsbury‟s Laws of England, it is apparent that the phrase “to
    practicethe profession of law” would be wide enough which would include
    not only appearance before the Court but also to carry on such activities
    which are specifically provided in the aforesaid paragraphs which provide
    for restrictions on unqualified persons against drawing or preparing any
    instrument, agreement, power of attorney or such other things. If that was
    not so, there was no necessity of restricting it by specific regulations."

           Extract of a Bombay High Court
   The Court quoted with approval:

"As there is no direct decision on the question involved, the learned Counsel
   appearing for the Petitioner has brought to our notice a decision rendered by the
   Court of Appeals of New York. In the Matter of New York County Lawyers
   Association v. Lorenzo J. Roel, (165 N. Y. S. 2d 31, page 14,) wherein the Court
   has interpreted Section 270 of the Penal Law which, inter alia, provides as

“It shall be unlawful for any natural person to practice … as an attorney-at-law … or
     to hold himself out to the public as being entitled to practice law as aforesaid, or
     in any other manner, … or advertise the title of lawyer … in such manner … or
     advertise the title of lawyer … in such manner as to convey the impression that
     he … conducts or maintains a law office … without having first been duly and
     regularly licensed and admitted to practice law in the courts of record of this
     state, and without having taken the constitutional oath.”

       Extract of a Bombay High Court
In that case it was contended by the appellant that his practice is restricted to
    Mexican law and he does not practice law in New York since he only
    gives advice and prepares instruments based on Mexican law and
    Mexican law is not “law” in New York. Therefore he is not covered by
    Section 270 of the Penal Law. The Court negatived the said contention
    by holding that whether a person gives advice as to New York law.
    Federal law, the law of a sister State, or the law of a foreign country, he is
    giving legal advice. It was further held that when legal documents are
    prepared for a layman by a person in the business of preparing such
    documents, that person is practicing law whether the documents be
    prepared in conformity with the law of New York or any other law. The
    Court further observed that to hold otherwise would be to state that a
    member of the New York Bar only practices law when he deals with local
    law. It was further observed: “A foreign lawyer who is familiar with the law
    of the country in which he is a lawyer is in a similar position. He is a
    specialist in a particular field of the law, but is nevertheless a layman in
    this state when he is not a member of the Bar here”. The Court held that
    protection of the members of the lay public of State, when they seek legal
    advice – and that was what defendant purported to furnish – was the
    basis of the requirements of licensing of attorneys by the State.

       Extract of a Bombay High Court
From the aforesaid discussion, the submissions made before this Court and
the affidavit in reply filed on behalf of Respondent Nos. 12, 13 and 14, prima
facie, it appears that the activities mentioned above carried on by
Respondent Nos. 12 to 14 would amount to practising the profession of law.
As stated above, Respondent Nos. 12 to 14 have established liaison offices
in this country; they are carrying on work of drafting documents, reviewing
and providing comments on documents, conducting negotiations and
advising clients on international standards and customary practice relating
to clients transactions; gathering information from prospective clients in
India and conducting market research to assess the feasibility of providing
legal services in India.
If, therefore, the said activities are held to be not covered by the phrase “to
practice the profession of law”, then the whole objects of the Advocates Act
would be frustrated, in the sense that there would not be any disciplinary
control nor these activities can be controlled by any method.

                                                              " [End of quote]
     We gratefully acknowledge the help given by the

Department of Industrial Policy and Promotion - Ministry of
       Commerce, Government of India, New Delhi
             THANK YOU

For further Information, Contact:
Gautam Mahajan
President - Inter-Link Services Pvt. Ltd.
K-185 Sarai Jullena
New Delhi, India 110025

Tel: +91-11-26922006, 26831226; Fax: +91-11-26929055;
E-mail: /