Every country in the world wants to work with India now: City of London's policy chief

UK-India Policy and FTA

Christopher Hayward, policy chairman, City of London, told Moneycontrol that every country in the world is now interested in working with India and becoming a part of the country’s success.

“It has really been interesting how every country in the world now wants to work with India and is now courting the country,” said Hayward, who is in India for a series of policy negotiations.

The City of London, also known as the Square Mile, is one of London’s 33 boroughs. It is home to the Bank of England and is considered the financial heart of the UK.

Commenting on the trade relationship between India and the UK, Hayward noted that if their bilateral Free Trade Agreement (FTA) goes through, it will provide a formal framework for the two countries to work together. He also hopes that legal services are a part of the FTA, so that both Indian and English law firms can start establishing offices in the UK and India, respectively.

Here are key points from Hayward’s interaction with Moneycontrol:

On Indian law firms being supportive of liberalising of legal services

In March 2023, the Bar Council of India (BCI), a body that regulates the legal profession and education in the country, notified rules that permit the entry of foreign law firms on a reciprocal basis.

Hayward, who had met with representatives of India’s top law firms and held discussions on liberalising legal services in India, said that they were welcoming and supportive of the Bar Council of India’s move to open the country up to foreign law firms.

“They want to be sure that this is a win-win for both countries and that it’s not a poaching of talent or jobs. So, I have offered to host a roundtable in London at Guildhall for representatives of the Indian legal sector, with our magic circle firms.”

Hayward noted that while Indian and English firms have been working together informally for the last two decades, liberalising the legal sector will formalise the arrangement and ensure there is a beneficial exchange of knowledge In various fields. He will also be holding meetings with BCI representatives to update them on the discussions with the Indian law firms and seek support from them in this regard.

On how liberalising the legal sector is a two-way opportunity

According to Hayward, liberalising the legal sector will benefit both Indian and English law firms. “I think it (liberalisation) is a great opportunity for both sides. I think UK lawyers will be just as keen and interested as Indian lawyers.

Hayward said that he is yet to hold detailed discussions with English law firms, and noted that the rules need to be properly discussed and implemented.

Speaking of the restrictions imposed on foreign law firms with respect to the kind of work they can pursue under the BCI’s rules, Hayward opined that this was appropriate, to begin with. “If this is successful, then I think in the future opportunities may open up further. But I think initially we have to build trust with both sides — the relationship has to be firmly, formally established.”

On opportunities in infrastructure investment

Hayward noted that the UK has potential capital to invest, particularly in infrastructure. “Public sector expenditure of the government, on roads, rail, etc. will need to be supplemented by the private sector, by finance. Capital Markets and capital flows in London are very strong. I think the opportunities for UK firms to invest in India are growing and they're growing because of the phenomenal growth of the Indian economy.”

The City of London policy chairman noted that the India-UK corridor will come into effect if the FTA comes through. “It will give a more formal structure to it or more of a framework, which will enhance and help this. So, I think the FTA is a really good thing. If it doesn’t happen for any reason, I do not believe that will diminish the opportunities and chances of the UK and India forging closer business and investment relationships.”