In India, regulatory compliance pressures are rising

India’s regulatory environment is undergoing one of its most comprehensive periods of change in recent memory. For corporate counsel, foreign investors and domestic conglomerates alike in India, regulatory compliance now sits at the forefront of legal priorities and has rapidly become the single most cited concern across practice areas. 

Feedback from market participants as part of our Asia-Pacific research suggests that regulatory intervention is increasing in scale and scope, touching everything from digital markets and data protection to restructuring and insolvency. For Indian legal teams, the challenge is not simply keeping pace with new rules but anticipating how regulators will interpret and enforce them in a market where practice and statute do not always neatly align. 

Referees consistently describe India’s regulatory framework as expanding across multiple fronts at once. Data protection reforms are bringing the country closer to global norms and imposing more stringent compliance obligations on businesses with significant digital operations. Alongside this, developments in artificial intelligence, technology and the wider digital markets are gaining momentum, with long‑trailed competition reforms expected to reshape how major platforms operate once they come into force. 

Changes in trade, tariffs and labour rules are also gathering pace, influenced in part by geopolitical dynamics and by the phased rollout of India’s new labour codes. Tax and foreign‑exchange adjustments continue to evolve in parallel, particularly where they intersect with the fast‑developing Gujarat International Finance Tec‑City (GIFT City) framework. At the same time, restructuring and insolvency practices are being reshaped by amendments to the Insolvency and Bankruptcy Code, including new cross‑border processes and updated personal bankruptcy measures. 

The breadth of these reforms is striking. As one major Indian corporate told us, the expansion of regulatory controls “continues to place increasing demand on legal advisory needs”, even for well‑established businesses operating across multiple sectors. 

Assistant VP, Indian Conglomerate 

GIFT City has been positioned as a flagship economic and political project, with reforms introduced to encourage domestic and cross‑border financial activity. Key regulatory changes, covering tax, employment, incorporation and competition, aim to make it easier for international players to establish operations on India. 

The most tangible driver of growth to date has been tax incentives, but the regulatory simplification programme is broad. Legal teams report increasing volumes of corporate, financing and fund formation work originating from India GIFT City, both domestic and international, and across a widening range of sectors. Aviation finance is one noted example of emerging activity. 

Yet the legal market is candid that firms themselves are not fully resourced for the spike in transactions. High activity levels since 2020 have not been matched by commensurate growth in legal team capacity. As a result, clients increasingly prioritise lawyers with strong relationships with domestic regulators and a deep understanding of how new rules will be applied in practice. 

One recurring theme from our interviews is the persistent gap between regulatory intention and market reality. International investors describe India as a complex jurisdiction, with counsel often required to bridge differences between international best practice and domestic norms. 

Founder, Indian corporate law advice firm

 Lawyers with strong commercial sensibilities and experience navigating India’s regulatory nuances are in high demand. Clients frequently seek partners or boutiques known for close familiarity with regulator behaviour, rather than defaulting to the largest firms. 

Changes to India insolvency rules are generating significant attention, though the market remains cautious in quantifying their impact. Amendments to cross‑border insolvency mechanisms and personal bankruptcy procedures, as well as targeted Insolvency and Bankruptcy Code (IBC) refinements, have already led to greater levels of distressed financing work. 

A notable development is the increased scope for out‑of‑court resolutions, allowing parties to reach commercial solutions without entering India’s overburdened court system. While this does not reduce the need for legal advice (lawyers draft agreements rather than litigate them) it does reshape the skill set required. Strong regulatory knowledge and an ability to navigate new interpretive grey areas will be essential, particularly as regulators, courts and government bodies continue to align their approaches. 

Although still emerging in research feedback, recent trade agreements with the US and EU have been widely discussed in the market. Their long‑term impact remains uncertain, but early commentary suggests increased emphasis on cross‑border trade compliance, competition and antitrust alignment, supply‑chain resilience and labour law consistency for international employers. 

Founder, Indian corporate law advice firm

 These considerations are likely to rise in prominence over the next research cycle, particularly for clients with significant US or EU exposure. 

India’s legal landscape is defined by regulatory acceleration. Whether navigating the opportunities of GIFT City, responding to insolvency reforms or managing the complexities of cross‑border trade, businesses face an environment in which compliance risks are diverse and fast‑moving. Legal teams, both in‑house and external, will need to maintain exceptional regulatory awareness and commercial agility to support organisations operating in one of the world’s most dynamic markets. 

Delve into our 2026 market report to see what’s shaking up the legal landscape in Japan, South Korea, Singapore and more jurisdictions.  

Access report