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DOING BUSINESS IN ASIA INDIA: A MODERN DAY SILK ROUTE Foreign law fi rms still can't set up in India but having local knowledge is the key to tapping this huge legal market. BY KELLY HARRIS I ndia has a common law tradition, is a member of the Commonwealth, is Eng- lish speaking, and has an almost unlimited market potential with more than 1.1 billion people. Conducting legal business in the world's second-most populous country takes knowledge of more than the laws governing companies; it takes patience, cultural sensitivity, and on-the- ground support. Talk to any of the fi rms with India special- ists, or those that have brought in high-powered talent to engage the South Asian gem and they say fi rst-hand knowledge is key. While India may be new to modern capitalism, the ancient barter system that relied on face-to-face negotiations is ingrained in the country's heritage. For nearly 3,000 years the silk routes linked traders, merchants, pilgrims, and nomads from Europe to the Far East criss-crossing India. Today's silk route is more likely to fl oat through the Suez Canal, zip between continents electroni- cally, or fl y in cargo planes. In 2008, nearly $2 billion in direct foreign investment occurred between Canada and India — up more than 150 per cent from the previous year. So, it is not surprising Cana- dian law fi rms have looked for ways to tap into the burgeoning market. Firms have sought out diff erent strategies to access this potential business. Th ere are practice groups made up of lawyers, oſt en of Indian descent, who specialize in other practice areas. Th ere are smaller, less formal associations that combine lawyers whose practice areas are common with markets their clients seek to access abroad. Th ere are specialists with foreign relations experience lit- tered throughout impressive resumes. Th en there are independent affi liations between law fi rms in Canada and abroad. One thing is for sure: just about everyone who has done business in India strives for on-the- ground connections. Yet standing in the way of Canadian law fi rms, many of which have opened offi ces in places like Kazakhstan, Japan, Hong Kong, and China, are rules against foreign fi rms setting up practices in India. Further regulations pre- vent Indian fi rms from having direct partnerships with foreign counterparts. "Th ey are a bit restric- tive about foreign lawyers practising," says Soma Choudhury of Ogilvy Renault LLP's India practice group. Her philosophy on doing business in India is very simple: engage those working in the country, travel to India, meet with the decision-makers, and get to know the laws. While the rules prevent Canadian fi rms from opening offi ces in Mumbai, Delhi, or Bangalore, Choudhury says it is only a matter of time before that changes. "Th e reality is at some point it is going to change," she says. "In the future, it will be like many industries, it will open up, but as of now you can't go and just set up shop. Th ere have been some slow changes to set up a limited partnership." Montreal-based Sunny Handa, co-head of Blake Cassels & Graydon LLP's India practice group, also agrees personal relationships play a major role in www. C ANADIAN Law ye rmag.com SE PTEMBER 2009 37