India Business Law Journal – September 2025

All aboard

AI: A train that businesses and law firms do not want to miss

As Indian businesses get on board the AI train, their legal departments and external counsel are not far behind them. Indian lawyers have been traditionally seen as technologically averse, but the younger generation is more open to seeing how AI tech can be put to work.

Cyril Amarchand Mangaldas, one of India’s top firms, was among the first to adopt AI to optimise business operations. The firm integrated legal AI, such as Harvey and Lucio, alongside generative AI, such as Microsoft Copilot and ChatGPT. Other firms followed suit, and now there is a plethora of options from Indian and international providers.

India Business Law Journal spoke with Winston Weinberg, the CEO and co-founder at Harvey, a prominent legal AI company, following its announcement to open an office in Bengaluru. Weinberg says that India will play a central role in Harvey’s growth – both as a base for its engineering, sales and operations teams, and as a key market for AI-driven transformation in law.

The company aims to deepen engagement with Indian general counsel and managing partners through custom workflows, integrations and partnerships that advance legal innovation.

Moving forward, in Game over, under the Promotion and Regulation of Online Gaming Act, 2025, the government has imposed a nationwide ban on all real-money gaming, ending the distinction between games of skill and chance that were long debated in court. The law overturns decades of precedent protecting skill-based games such as rummy and fantasy sports.

The act has attracted criticism, given the sweeping enforcement powers, warrantless searches, and personal criminal liability on company officers. In addition, critics warn of economic fallout – USD3 billion in lost investment, job losses and damage to India’s startup image. However, the government has defended the ban on grounds of social harm, national security, and combating financial fraud.

In Amplifying legal’s voice, Priya Bahal, associate general counsel at KPMG, writes about the evolving role of in-house counsel, which she says has shifted from a traditionally reactive function to a proactive and strategic one.

In the past, legal teams were often called only after problems had arisen – whether responding to penalties, handling disputes, or reviewing contracts at the final stage – and were often seen as barriers to business. Effective legal teams today are reshaping this image by working closely with business leaders as genuine enablers.

Next, we look at how the legal market of Pune is faring – a tier 2 city sitting next to India’s financial capital, Mumbai. Often seen as an extension of Mumbai, Pune has created an independent identity as a growing legal hub. The city is now home to major corporate groups such as Bajaj, Bharat Forge, Thermax and Kirloskar, as well as thriving automotive, IT and renewable energy sectors. The influx of domestic and foreign investment has created strong demand for fast, cost-effective legal services.

In The legal appeal, local firms highlight the advantage of having a presence in Pune to support industries directly, while national firms such as Obhan & Associates have expanded into the city to tap into opportunities. With Pune’s industrial growth and global connections, the legal market has evolved into a sophisticated arena catering to corporate, cross-border and regulatory work.

Finally, Sanjit Kaur Batra, a legal head at Cummins, explores the regulatory aspect of the manufacturing sector in Oiling a growth engine. Batra writes that while manufacturing is central to long-term economic growth, India has yet to address persistent regulatory and operational hurdles.

India contributes just 2.9% of global manufacturing output but aims to increase the sector’s share of GDP from 12% to 23% in the next two decades, with projections placing its value at USD1 trillion by the fiscal year 2026.

Government initiatives such as Make in India and the Production Linked Incentive schemes have encouraged global players such as Foxconn, Tesla and Apple to invest in India. However, Batra says establishing a facility requires multiple approvals at both central and state levels across various laws including land, tax, labour, environmental and safety, often taking years.

For MSMEs (micro, small and medium-sized enterprises), compliance costs can reach up to INR1.7 million (USD19,300) annually, with more than 1,450 regulatory obligations to meet. Ongoing issues such as counterfeiting, weak intellectual property protection, and slow dispute resolution continue to deter investor confidence and discourage technology transfers.

Batra emphasises the need for transparent, time-bound clearances, simplified labour laws, and a genuine single-window approval system aligned with global standards. Streamlined compliance, she argues, will be a strategic enabler for India to establish itself as a trusted global manufacturing hub.