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The answer to the question as to whether the influx of foreign law firms is a boon or curse really depends upon various factors including whether these firms are LPOs engaged in rendering offhore or outsourced legal services or are practising Indian law. This article has aptly highlighted the distinction between those that are LPOs and those that are competitors to the Indian lawyers. While it is for a fact that LPOs increases the job opportunities, I do not agree that a typical LPO includes a huge range of legal processes, like writing software licensing agreements, communicating with clients, drafting of patent applications, legal research, litigation documentation, and so on. As a matter of fact, except for a handful of LPOs, a majority or even super-majority of them do not provide high end legal services. This is unfortunate because, as indicated in the article, India has got a tremendous potential to become one of the world's great legal centres in the coming century.
Influx of foreign firms into other areas like Autos, Cell phones, Steel It etc have all been beneficial for India. If foreign firms are permitted in the Legal/Accounting areas, they will discover the intrinsic value of Indian brains and Legal/Accoujnting outsourcing will take off too too.
I personally feel LPO will create a competion for Law Services in India. And certainly more Foreign Solicitor Firms will come up. Just imagine Law Firm like Ganodia and so on are heaped up with corporate case, where as they neither recruit Lawyers and treate them well , behave with the young lawyers properly, allow them to execute law jobs. It seems they just treate these qualified lawyers as legal clerks. But then its not like that. So I feel it is in the right direction opening Foriegn Law firms in India. This will generate more efficient work. Moreover, the Politicians and Judges will be put to work full time and efficiently and effectively. Just imagine there are vacancies for 25 Judges in Calcutta High Court and around +3.5 Lacs pending cases . Even Writ petions are not moving. Writ against KMC is totally stopped in Calcutta. So Certainly it will be a great job for Kapil Sibal , if Foriegn Law Firms creep in India fast.