India is at a pivotal moment as it progresses towards significant economic transformation. With a GDP growth rate consistently above 6% and projections to become the world’s third-largest economy by 2028, the business landscape is rapidly evolving. As the industries in India mature, so too do the laws that govern them. New regulations on data privacy, cybersecurity, ESG disclosures and financial compliance (including recent SEBI guidelines) are being introduced. In this scenario, companies are increasingly under pressure to ensure compliance, address legal risks, and respond swiftly to regulatory changes.
Supreme Court (Hindustan Times)
The role of the General Counsel (GC) continues to evolve beyond managing legal risks and ensuring compliance to also serving as strategic advisors and guardians of corporate integrity and governance. As the world becomes more interconnected, transparent, and legally complex, the GC needs to be vested with greater authority to embed sound governance and ethical practices across the organisation. Their role is no longer limited to legal oversight; it is fundamental to shaping strategy, guiding responsible leadership, creating sustainable value and safeguarding the organisation’s long-term integrity and reputation.
Despite their strategic importance, Indian law currently does not allow full-time employed lawyers to ‘practice law.’ Under Rule 49 of the Bar Council of India (BCI) rules, salaried lawyers must suspend their practice licence, effectively stripping them of professional recognition, legal privilege, and ethical standing. This is in contrast to global norms, leading to regulatory oversight.
In countries like the US, United Kingdom, and Australia, in-house counsel is licensed and regulated under specific frameworks that grant them attorney-client privilege, ethical protection, and the right to represent their organisations before courts or regulators, seen as an integral part of the legal system, not as outsiders.
Today, the GCs are involved in shaping business strategy, driving global M&A, advising on ESG frameworks, responding to regulatory investigations, managing litigation risk, and ensuring compliance with complex domestic and international laws. In dynamic sectors like fintech—where disruptive technologies such as AI are driving rapid transformation and innovation often outpace regulation—the GC plays a critical role in helping companies stay compliant without compromising their competitive edge.
An empowered GC can prevent billion-dollar liabilities, unlock global partnerships, and mitigate reputational risks—all while shaping the legal strategy that drives sustainable growth and competitive advantage. Without a license, in-house lawyers do not have legal privilege, and this can compromise confidentiality in sensitive matters. Their legal opinions may carry less weight in cross-border negotiations, and their lack of formal recognition could be seen as a weakness in corporate governance by global investors and regulators.
Moreover, India’s ambitions to become a global hub for innovation, investment, and enterprise hinge on the maturity of its legal system, something that is currently lacking.
As stakeholders and regulators demand greater transparency, accountability, and strong board-level governance, the lack of formal recognition for in-house counsel has become a critical gap. To address this, the Bar Council of India must amend Rule 49 to establish a new legal category for in-house counsel—one that includes a dedicated license, legal privilege protections, corporate-specific ethical standards, and formal recognition of in-house experience. Alongside this, the Bar Council and industry bodies should develop tailored legal education, leadership and ethics training, peer review mechanisms, and a professional code of conduct for corporate legal professionals.
This would not only align India with international legal norms but also strengthen corporate governance frameworks, making legal teams integral to board-level decision-making.
The GC is uniquely positioned at the intersection of law, risk, ethics, and strategy.
This is not merely a legal reform — it’s a strategic business imperative and industry leaders must push for this change. Empowering in-house counsel is vital for improving corporate governance, enabling cross-border collaboration, and ensuring India’s businesses are legally resilient on the global stage. Companies that operate globally already rely on their in-house teams to navigate foreign jurisdictions. India must ensure its legal talent is just as empowered, not restricted by archaic regulations.
Governance has moved from courtrooms to boardrooms; therefore, today and in the future, the role of the GC is ever more important, an essential pillar in strengthening India’s global competitiveness. Their seat at the table is essential.
This article is authored by CV Raghu, president and founding member, General Counsel's Association of India (GCAI).
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