The Institute of Chartered Accountants of India is preparing a significant push to reshape the regulatory framework governing the profession, with proposed changes to the Chartered Accountants Act expected soon. The initiative is designed to help Indian accounting firms grow larger, work more collaboratively and compete with global professional services networks that dominate cross-border advisory, audit and compliance work.
The planned reform comes at a time when India's corporate landscape is becoming more complex, particularly in sectors such as automotive, electric vehicles and mobility, where companies increasingly require integrated support across finance, tax, assurance, transaction advisory and regulatory compliance. As domestic manufacturers, suppliers and mobility startups scale up, the demand for firms capable of handling large, multi-jurisdictional assignments has risen sharply. Industry observers say the current structure of the profession, while robust in standards, has often made it difficult for Indian firms to build the size and reach needed to win larger mandates at home and abroad.
Bigger Firms, Wider Reach
At the centre of the discussion is a broader question: how can Indian professional services firms be enabled to grow without compromising independence, ethics or audit quality? ICAI is understood to be revisiting rules around networking and practice arrangements, with the aim of allowing broader collaboration among firms. Such changes could make it easier for smaller and mid-sized practices to combine capabilities, share resources and present themselves as larger entities when bidding for work.
The push is also aligned with a wider policy conversation in New Delhi. The Prime Minister's Office has reportedly discussed regulatory adjustments for domestic companies, reflecting a growing recognition that India's professional ecosystem must evolve if it is to support the country's industrial and export ambitions. For the accounting profession, that means moving beyond a fragmented market of many small practices toward a structure that can support scale, specialization and geographic reach.
Global Competition Pressure
The timing is notable. Indian companies are expanding into new markets, raising capital more frequently and facing more demanding disclosure and governance expectations. At the same time, multinational clients operating in India often prefer firms with deep bench strength, sector expertise and the ability to deliver across multiple cities and jurisdictions. Global accounting networks have long benefited from scale, brand recognition and integrated service models, leaving Indian firms at a structural disadvantage.
ICAI's proposed changes are therefore likely to be viewed as an attempt to close that gap. By revising the rules that govern networking and practice, the institute could create room for larger domestic firms to emerge organically through collaboration rather than consolidation alone. That would be especially relevant for firms seeking to serve capital-intensive sectors such as automotive and EVs, where projects often involve complex financing, supply-chain restructuring, regulatory approvals and sustainability reporting.
The reform agenda also carries implications for talent. Larger firms typically offer broader career paths, deeper specialization and more opportunities for training and international exposure. If the profession can support bigger entities, it may become more attractive to younger chartered accountants who increasingly seek structured advancement and exposure to high-value advisory work.
Policy Shift Underway
Any changes to the Chartered Accountants Act would require careful drafting and consultation, given the profession's central role in audit integrity and public trust. Still, the direction of travel is clear: policymakers and regulators appear more willing to consider structural reforms that would allow Indian firms to compete on a global footing. For ICAI, the challenge will be to balance scale with safeguards, ensuring that expanded collaboration does not weaken accountability.
If implemented, the changes could mark one of the most consequential shifts in the profession in years. They would signal that India is no longer content to rely on a large number of small practices for a rapidly modernizing economy. Instead, the goal is to build stronger, more capable professional entities that can support the country's next phase of industrial growth and international expansion.