India's legal sector is booming—so why are 98% of law grads left out from the top jobs?
Fewer than 2% of India's fresh law graduates secure positions at the country's top corporate law firms, according to data shared by legal recruitment firm Vahura with Mint.
Nearly 100,000 law students graduate annually, and about 69,000 clear the All India Bar Exam, which makes them eligible to practice law in any court across the country. But out of more than 1,700 law schools in the country, only graduates from the top 25-30 colleges consistently land jobs in corporate or mid-tier law firms.
Leading law firms such as Shardul Amarchand Mangaldas, Cyril Amarchand Mangaldas, and Khaitan & Co. collectively hire only 400-600 fresh graduates annually, mostly for specialized practices like corporate law, private equity, banking, dispute resolution, infrastructure, tax, and regulatory law.
'Many graduates struggle to enter the organized legal workforce, often starting in local litigation or informal setups. It's not that mid-tier firms offer fewer opportunities, but there's a sharp drop in readiness and access beyond top colleges," said Akanksha Antil, recruiter and mentor for lawyers and law students at Vahura.
While just 2% of law school graduates make it to leading corporate firms, another 15-20% manage to find work in boutique and second-tier firms, contributing to the broader corporate legal landscape. Most of the other fresh graduates begin their careers in small litigation practices or depend on personal networks, missing out on the organized corporate legal sector.
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This is comparable to the engineering sector, where, despite producing a large talent pool of around 1.5 million graduates annually, only about 10% secure jobs due to a persistent skills gap, according to a recent report by Unstop.
The struggle to find enough suitable and job-ready law graduates comes at a time when India's legal sector is growing rapidly. Rising compliance demands, digital transformation, and increased deal activity drove India Inc's legal expenses past the ₹60,000-crore mark in 2024-25, up 15-18% from the year before, according to Vahura data shared with Mint earlier in March.
This surge in demand for legal services has sparked intense competition among law firms seeking to strengthen their teams, with about 60% of their hiring needs met through lateral recruitment from other companies and the remaining 40% met by campus hiring, according to Vahura.
'We have seen steady and encouraging growth in our hiring of fresh graduates over the past few years. This year, we onboarded 43 freshers, marking a 79% increase from last year," said Suman Rudra, chief human resources officer at JSA Advocates & Solicitors.
'On average, we hire between 60 to 100 fresh graduates each year. The fresher intake has increased due to expansion across our practice areas and firm-wide growth," added Amar Sinhji, executive director, human resources, at Khaitan & Co.
Anupriya Anand, head, human resources, at Cyril Amarchand Mangaldas, said the firm recruits 150-200 graduates annually, with numbers steadily increasing in recent years.
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Casting a wider net
India's premier National Law Universities (NLUs) remain the primary talent pipelines for law firms. These include the National Academy of Legal Studies and Research (NALSAR) in Hyderabad, Gujarat National Law University (GNLU) in Gandhinagar, National Law Institute University (NLIU) in Bhopal, West Bengal National University of Juridical Sciences (NUJS) in Kolkata, and O.P. Jindal Global University in Sonipat.
But law firms are now also recruiting from a wider pool of 20-25 top colleges.
'A top-ranked student from a lesser-known law school may now get preference over a mid-ranked student from a top law school, especially if the candidate demonstrates clarity of interest, relevant internships, and better retention potential," Antil from Vahura explained.
A spokesperson for Gujarat National Law University told Mint that more than 100 students secure placements annually through the school's internship and placement division, with an average placement rate of 80-85% the past three years. More than half of the recruiting firms at GNLU are regular visitors, offering roles across corporate law, dispute resolution, finance, and regulatory advisory.
India's top legal firms also recruit graduates through pre-placement offers extended during internships. Once hired, the firms emphasize soft skills and cultural fit—considered as important as academic credentials.
Compensation packages for freshers range from ₹14 lakh to ₹22.5 lakhper annum, typically including base salary, performance bonuses, and other benefits.
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The readiness gap
The challenges faced by fresh law school graduates mirror broader issues in India's job market.
A recent report by hiring platform Unstop found that 83% of engineering and 50% of MBA graduates lacked job or internship offers last year, with unpaid internships rising sharply. Data from TeamLease show that although India produces 1.5 million engineering graduates annually, only 60% are employable and just 45% meet industry standards.
Law firms, too, see significant skill gaps among fresh law graduates, particularly in technological proficiency, negotiation, analytical thinking, and persuasive advocacy.
'A common challenge is the gap between academic learning and the fast-paced, client-driven nature of law firm practice," said Parul Gupta, chief human resources officer at Trilegal. 'Fresh graduates often need time to polish their communication skills—especially in articulating complex legal concepts clearly—and develop client-focused thinking to understand priorities and deliver practical solutions."
Anupriya Anand of Cyril Amarchand Mangaldas added that technological proficiency and negotiation skills are common deficiencies among fresh graduates, especially in M&A (mergers and acquisitions) and regulatory law.
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'To address these gaps, law schools like BITS Law School offer practical training in client counseling, mooting, legal drafting, and AI applications, through initiatives such as RAW (Readiness at Workplace), CIA (Counsels in Action), and EIA (Entrepreneurs in Action)," said Ashish Bhardwaj, founding dean, BITS Law School.
Gujarat National Law University supports aspiring litigators through its GNLU Litigation Assistance Scholarship Scheme (GLASS), which provides financial aid to help overcome early career challenges in litigation.
According to the National Statistical Office's first monthly labour force survey released in May, India's unemployment rate stood at 5.1% in April, with urban unemployment at 6.5% and nearly 14% of youth unable to find work.
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It may seem like there is a lot of tension with tariff wars, geopolitical unrest, and earnings slowdown, but there are always factors affecting the market. Today, the Nifty is at the same level as it was one year ago, and in spite of that, its five-year absolute return is 118 per cent. That shows significant growth and should give investors confidence to stay put, ride out the storm, and wait for the next upcycle. A good investment strategy should be to identify sectors that are likely to do well through these turbulent times. India's consumption is growing, infrastructure and telecom services are expanding, and financial services are being penetrated deeper. Investors can focus on these sectors to generate returns on their portfolios before the dust settles and we see broader market growth, like we saw post-COVID. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
