I Am An Ordinary Lawyer With Great Opportunities, Says Shardul Shroff

Speaking about the role of legal services in the context of creating a $ 5 trillion economy at the BW Legal World Summit 2019, Shardul Shroff, Executive Chairman, Shardul Amarchand Mangaldas & Co. said that fundamental in the aspect of attaining a $5 trillion economy is to maintain a 7-9 per cent growth rate for the next six years. "We need $1 trillion dollars of export to achieve the required growth. Unless there is a dynamic and a dramatic change in the way business looks at India, or India looks at itself, it will likely not happen," he said.   

India is currently a $ 2.7 billion economy. Its aspiration was a 7% growth rate when the survey was started with a view to make it into a $ 5 trillion economy by 2025. Shroff stated that India shares a high growth rate similar to China, but for several reasons, local (the GST and the demonetization), and global (the trade war between China and the US) the growth is not where it should be. “There is in some sense a denial by the Government that we are in a chaotic time. There is too much happening, too soon and without the same being absorbed by the people who deserve good policy.” 

Role of Legal Fraternity in $5 Trillion Goal

If India needs to become a $5 Trillion economy, the legal network too needs to keep pace with the required growth. As per Shroff, India has a large legal network with over a million lawyers. Also, there are 1500 law universities and 27 national law universities. "However, only 6,000-10,000 are business commercial lawyers whereas, the numbers need to be at least 10 times more,” Shroff added. 

Opening Up Legal Domain?

When asked what would happen if the economy were to open and the legal domain was opened up? He said every economy needs time to grow its business law section. "For India, there is a structural difference in what is needed in the rural sector and in the urban sector legally, and also in the world of commerce. These changes need to be absorbed into law education."   

He further stated that If India needs to activate a sleeping economy, it needs to have a separation of legal education and the understanding of issues & needs of the rural and urban sectors, and further of the business sector. "All of these need to be taught in a different way. Additionally, it should be mandatory for every lawyer to serve for at least six months in the rural sector." 

On the question of opening up the legal fraternity to global best practices, Shroff said he is a firm believer that international lawyers need to come in. However, he added a cautionary note. "It is also important to think if the circumstances of opening the legal services space will threaten the survival of the Indian legal profession. If you open the doors and give them access to all of India, we need to understand if a reciprocal opening of the US and Europe is happening as well," he asks. 

In the US for example, all 52 states have different license requirements. Whereas, in India, if you are licensed as a foreign lawyer you have access to all of India, said Shroff. How, therefore, is the process reciprocal and equal opportunity? Further, the US legal system and the Indian system don’t match at all. "Therefore, thought needs to be given to all such aspects before going down this route. It is imperative to protect domestic legal practices,” he added. 

Excerpts of a Quick Chat with Dr. Annurag Batra, Chairman & Editor-in-Chief BW Businessworld & Exchange4media.

AB: What are your views on how NCLT is being implemented? 

SS:  It will be beneficial if NCLT is separated into three verticals. IBC vertical, a company law vertical and a competition law vertical. 

AB: Regarding the upcoming budget, and any suggestion for the finance minister?

SS: To jump-start the economy, spending and investment both are required. Loaded tax advantages have to be given to make industry and HNI invest in the country.

AB: You have achieved a lot, is there anything that you still want to focus on? 

SS: Pro bono work and legal education are areas I would like to focus on. I want to create a virtual base for providing free legal education.