International law firms are gearing up to push into the nascent Indian market after the Indian Government said details of crucial legislation designed to open up the local legal market will be unveiled before the end of the year.

The India Minister of Justice, Shri Hansraj Bhardwaj, who has been holding talks with local Bar associations in order to thrash out the proposals, confirmed last month he is aiming to be in London before Christmas to discuss the model with his UK counterparts.

It is unlikely that the proposals will fully open the legal market, with City lawyers close to the negotiations suggesting that foreign firms are expected to be forced to initially accept working in associations or joint ventures.

Despite indications that long-sought after Bar reforms are finally set to become a reality, sources close to the talks say the market is still unlikely to be opened before 2009.

One City partner said: "We would rather the Indian market was fully liberalised. Previous efforts at partial liberalisation, such as the joint venture model operated in Singapore, have been very problematic and we would like to avoid that. However, at this point, it seems unlikely."

The news comes as the UK legal community continues its charm offensive on the Indian Government and local legal regulators following a string of recent visits to the subcontinent.

The UK Joint Economic and Trade Committee legal team, which consists of Law Society representatives and partners from a number of major City firms, has been at the forefront of the negotiations.

Bhardwaj has also previously visited the UK. In June, he made a speech in London in which he underlined the Indian Government's commitment to opening up its legal market to UK law firms.

While partners close to the recent negotiations say the latest announcement represents a step forward, many Indian lawyers
are still strongly opposed to liberalisation.

Earlier this year, local regulatory body the Bar Council of India (BCI) declared it opposition to the entry of foreign lawyers, a stance that will need to be softened before progress can be made.

More international news