“We project Indian companies’ aggregate legal expenses for FY25 to jump 15%–18% from FY24,” said Ritvik Lukose, co-founder and chief executive officer (CEO) of Vahura, a compliance and governance-focused search and advisory firm. “This growth reflects evolving needs in a complex legal environment.”
In FY24, Indian companies’ aggregate legal expenses stood at ₹52,568 crore, jumping 17% on-year over ₹44,920 crore in FY23, according to the firm. This was driven by increased global deal activity, higher dispute resolution costs, and growing compliance expenses.
The top 50 companies accounted for ₹21,389 crore of this expenditure in FY25, reflecting a 17.4% growth. Law firms expect double-digit increases to continue for the next few years.
Khaitan & Co. estimates the collective legal spend of Indian corporates to be north of ₹50,000 crore this fiscal.
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“This increase is largely driven by a sharp rise in statutory fees, taxes, and duties, which has significantly raised compliance costs,” said Tina Gosar, chief financial officer at the law firm. “As a result, companies are investing more in legal services for enhanced compliance and risk management.”
With business growth and emerging opportunities in a complex and uncertain global market, the law firm anticipates a steady rise in deal activities and asset protection. “The growing volume of commercial disputes and investigations will also contribute to the continued rise in legal expenditures,” said Gosar.
Vahura’s Lukose said the rise of proprietary tech and startups will drive demand for stronger patent laws. “The booming IPO market and alternative investments create opportunities for law firms,” he said. “We anticipate a growing role for law firms in regulatory compliance, transaction advisory, and competitive strategy.”
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However, according to him, this increase isn’t just about rising costs – it’s also a reflection of Indian companies proactively investing in legal infrastructure to support their growth ambitions and mitigate risks in an evolving business landscape. “As Indian businesses continue to mature and expand their footprint both domestically and internationally, we expect this trend of strategic legal spending to continue in the coming years,” Lukose said.
The uptick in legal costs has spurred hiring. That has sparked a poaching war with law firms beefing up their top decks over the past 12 months. While they are splitting lateral and campus hires in a 60:40 ratio, both large and boutique law firms feel the demand for senior lawyers.
Senior corporate lawyers and leaders in M&A, private equity, disputes, and competition law moved between rivals such as IndusLaw, Khaitan & Co, Cyril Amarchand Mangaldas, JSA Advocates & Solicitors, and Trilegal, among others.
“Senior talent movement and demand for mid-to-senior lawyers have surged, particularly in specialized domains like dispute resolution and international arbitration,” said Anandaday Misshra, managing partner at AMLEGALS. “Competitive pressures and sectoral growth have increased lateral movements.
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Among the larger groups, JSA Advocates & Solicitors (JSA) saw a 32% increase in attorney count in the current fiscal compared to the previous year. Suman Rudra, chief talent officer at JSA Advocates & Solicitors, calls this growth “a mix of organic and inorganic talent additions” on the back of high growth in areas like capital market practice (within the finance practice).
“We are very competitive in our compensation practices and benchmark our retainer, bonuses, and other benefits every year,” Rudra told Mint. “We are the only firm that offers ownership of work and rewards exclusively on this aspect. This is over and above the fixed salary and bonuses.”
New Delhi-based boutique litigating law firm Karanjawala & Co., which focuses on litigation and arbitration, prioritizes lateral recruitments.
“One of the major incentives we give all our associates and partners is that if they bring any matter to the firm, they get a 30% share of all billing towards that matter,” said Tahira Karanjawala, partner at Karanjawala & Co.
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Law firms like Saraf and Partners that depend more on college campuses for hiring talent. “For FY24-25, our total hiring stood at 62, of which 40 were lawyers recruited directly from law schools, while the remaining were lateral hires,” said Mohit Saraf, founder and managing partner at Saraf and Partners.
