Opportunities galore in Indian legal sector, but only for the select few

The advent of full service law firms has created various new opportunities for legal professionals

The Indian legal market has seen dynamic change in the past decade. The ever-increasing interplay of legality and commerce has lead to the sector making gargantuan strides in an attempt to capitalise on this swiftly developing corporate landscape, both within the nation and beyond.

The advent of full service law firms have created various new opportunities for legal professionals. Firms such as AZB & Partners, Trilegal, J Sagar Associates and the recently divided Amarchand Mangaldas have increased in size and influence considerably to encompass a vast arena of quasi-legal, advisory and transactional functions in recent times.

Alongside these big business firms, increasing legal compliance requirements have also provided momentum for commercial institutions to enlarge their legal departments manifold with in-house counsels now becoming a critical cog in the business enterprise.

With all this development, it is easy for one to think that the future of young legal aspirants in India is indeed bright. This notion though, is only partially true. In actuality there exists a severe disparity between the top (and often national) law colleges and the plethora of institutions catering to the field below.

Premier schools such as National Law School of India University (NLSIU), National Academy of Legal Studies and Research (NALSAR) and West Bengal National University of Juridical Sciences (NUJS) have now become bastions of corporate legal recruitment, offering students a wide range of prospects including placements in foreign firms, which are hiring top Indian law graduates in increasing numbers.

The premium tag attached to these institutions, most of which came into existence in the late 90's (barring NLSIU), have lead to large firms and companies flocking to the top tier colleges during each recruitment cycle. Following the 'early bird catches the worm' approach, many of these enterprises even fill up their yearly vacancies withpre-placement offers made to upcoming graduates.

"New firms have come into existence of late and the older ones have expanded monumentally. There is almost one hundred per cent recruitment from the top law schools each year" said V S Elizabeth, professor and placement officer, National Law School of India University.

As a result, this trend left little room for candidates from the second and third tier institutions to secure positions at big business firms or large corporate departments in recent years. According to Anirban Das, chief people officer, Lakshmikumaran & Sridharan, the college a candidate comes from plays a large role in their chances of being recruited in a top tier firm.

"After all, this approach works as a good indicator of potential. Everything can't be gauged through an interview process alone," said Das.

The legal profession is one that is steeped in traditionalism and legacy. Before the era of the national law schools, the profession had seen few first-generation entrants. In recent times, many more budding professionals have taken an interest in the vocation from non-legal backgrounds, often lured by the illusory prospects of working with these big ticket firms and legal departments.

These young aspirants, often unaware of the reality of the industry's hiring structure, after graduating found themselves on the other side of this recruitment shangrila. In the country's court based litigation structure, a game where familial legacy still holds the fort, graduates are fighting out to get a foothold. 

Many graduates have to fight out in the country's court based litigation structure, a game where familial legacy still holds the fort.

The stark difference in payouts between the corporate legal sector and the more traditional adversarial form of advocacy in the courts have added to the worries of this vast majority of non-elite legal graduates.

"The course structure in top tier colleges is far more oriented towards facilitating a corporate legal practice, unlike the more conventional approach of the lower tier institutions" says Amlan Guha, advocate and former student of Symbiosis Law School.

According to Guha, the national law school system had been established to improve the quality of the bar and bench in India, but since the financial opportunities are far greater in the large firms, students are avoiding the field of litigation.

Compared to full service firms, which often pay upwards of Rs 12 lakh an annum to fresh entrants, the payouts in litigation are often paltry. Fledgling advocates sometimes get paid nothing at the beginning of their careers, and 'honourariums' as they are often termed are usually between Rs 2 and 3 lakh a year, if at all.

"Litigation is traditionally a low paying exercise. The art has to be learned. The average law graduate does not possess the requisite skills for litigation, at least initially and consequently their remuneration is low. Patience is the name of the game," said Paval Duggal, advocate, Supreme Court of India.