India's legal market prevents foreign law firms opening, but is continuing to reap the benefits - including more work and increased salaries - from the tie-in with international firms eager to maintain a presence in its legal market.

With Magic Circle firm Clifford Chance to set up an India team in Singapore, the firm is set to respond to the increased trade in the region, advising on capital markets transactions involving India.

Corporate specialist Edward Bradley will relocate from London to head the team, and will be supported by former Amarchand & Mangaldas lawyer Rahul Guptan, who recently joined the firm, and counsel Chris Holland, relocating from the Hong Kong office.

"Singapore was the natural home for our new unit, as it boasts a growing concentration of India-focused companies and banking units, already well aware of our firm's capabilities,"said Bradley.

Meanwhile, Eversheds' India practice has been appointed to the large-scale Vizag power project, and will work alongside local firm FoxMandal Little. The US$1.3bn power project will be built in the southeast state of Andhra Pradesh.

The announcements increase both Clifford Chance and Eversheds' continual interest in the booming India legal industry. While Clifford Chance has set up its offshore outsourcing centre in New Delhi, Eversheds announced in September that it will outsource legal work to India.

With firms increasing their stake in the India legal market, local lawyers are reporting an increase in salaries, with lead partners earning up to $1m a year, according to the Financial Times.

"Corporate [lawyer] salaries have exploded. They are going up by 20-40%," said Anand Prasad from India law firm Trilegal.

Firms such as Amarchand & Mangaldas, Jyoti Sagar Associates, Luthra & Luthra and Dhir & Dhir are hiking attorney salaries by as much as 100% in a bid obtain talent from larger firms.