When discussing the future growth of litigation funding in new jurisdictions around the world, India is often highlighted as one of the most attractive opportunities, given the size of its economy and the associated scope of its litigation market.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
When discussing the future growth of litigation funding in new jurisdictions around the world, India is often highlighted as one of the most attractive opportunities, given the size of its economy and the associated scope of its litigation market.
An article by Business Today provides an overview of the current state of litigation financing in India, with insights provided by industry leaders from different organizations involved in the sector. Ashish Chhawchharia, partner and head of restructuring services at Grant Thornton Bharat, points to the combination of rising legal costs and the huge volume of cases, as being a key driver for the industry’s growth in India.
To demonstrate the size of the potential market, the article includes data from the National Judicial Data Grid, which reveals that as of May 1, 2023, there are nearly 43.5 million pending cases throughout the Indian court system. With such a large volume of cases, new funders like FIGHTRIGHT Technologies are turning to analytics tools to help assess cases and perform the necessary due-diligence, with FIGHTRIGHT’s CEO Nitin Jain highlighting that by utilizing technology, they can make litigation funding ‘one of the least risky products’.
However, obstacles remain for litigation funding’s growth in India as Sumit Agrawal, founder of Regstreet Law Advisors, states that ‘the regulators are monitoring this trend closely to ensure that it is properly regulated and does not lead to any financial misconduct or illegal activities.’ Jain argues that increased regulation will be inevitable as the industry matures, and suggests that some degree of legislative standards will be beneficial, stating that ‘the more formal it becomes, the better it is for the industry.’
