The Institute of Chartered Accountants of India is preparing to put forward amendments to the Chartered Accountants Act in a bid to create a more enabling framework for larger Indian accounting firms, according to people familiar with the matter. The proposed changes are expected to focus on loosening structural constraints that have long limited consolidation, networking and broader collaboration among domestic practices, as policymakers and regulators look to strengthen India's professional services base.
The initiative comes at a time when Indian firms are under growing pressure to compete with global accounting networks that dominate large audits, advisory mandates and cross-border assignments. Industry participants have long argued that the current regulatory architecture fragments the market, making it difficult for homegrown firms to pool resources, expand geographic reach and invest in specialist capabilities at the scale demanded by multinational clients. ICAI's planned proposal is intended to address that gap by allowing Indian firms to operate in a more integrated and competitive manner.
Regulatory Reset
The discussions have gained traction after the Prime Minister's Office reviewed possible regulatory adjustments for domestic companies, underscoring the policy significance of the issue beyond the accounting profession. While the exact contours of the proposed amendments are still being finalised, the direction of travel suggests a broader effort to modernise professional rules so Indian entities can grow into larger, more capable organisations without running afoul of existing restrictions.
At the centre of the debate is the question of scale. Large corporates, including those in capital-intensive sectors such as automotive, electric vehicles and mobility, increasingly require firms that can provide audit, tax, risk, transaction and compliance services across multiple jurisdictions. Smaller practices may have deep technical expertise, but they often lack the network depth, bench strength and technology investment needed to service complex clients with national and international footprints. ICAI's push is aimed at bridging that divide.
The institute is also expected to revisit its networking and practice guidelines, which govern how firms can collaborate, share resources and present themselves to clients. Any relaxation or redesign of those rules could open the door to broader alliances, deeper specialisation and more efficient service delivery. For the profession, that would mark a significant shift from a traditionally fragmented market toward a model that rewards scale, governance and institutional depth.
Bigger Firms, Broader Reach
The policy logic is straightforward: if Indian firms are to win larger mandates at home and abroad, they need the ability to build larger platforms. That means more than simply adding partners. It requires structures that support talent retention, technology adoption, sector expertise and multi-city or multi-country execution. In practice, that could help Indian firms compete more effectively with the global networks that currently dominate the upper end of the market.
The implications extend beyond accounting. A stronger domestic professional-services ecosystem can support the wider economy by improving the quality and availability of advisory services for manufacturers, automakers, EV startups, infrastructure companies and mobility platforms seeking to scale. As these sectors expand, they increasingly need sophisticated financial reporting, regulatory compliance and transaction support. Larger Indian firms could become strategic enablers of that growth.
Still, any reform will need to balance expansion with professional independence, quality control and accountability. Regulators are likely to be cautious about changes that could weaken audit standards or create conflicts of interest. That means the eventual proposal may combine greater flexibility with tighter oversight, rather than a wholesale deregulation of the profession.
What Comes Next
ICAI is expected to move soon with its recommendations, after which the proposals would need to travel through the government's legislative and regulatory process. The timing and final scope of the amendments will determine how quickly the profession can respond, but the direction is clear: India wants its accounting firms to grow up, not just out.
If enacted, the changes could mark one of the most consequential shifts in the structure of the profession in years. For domestic firms, the opportunity is significant: a chance to consolidate, specialise and compete on a larger stage. For policymakers, the goal is equally strategic ā to build professional institutions that match the ambitions of a fast-growing economy and its globally integrated industries.