The Institute of Chartered Accountants of India is preparing to seek changes to the Chartered Accountants Act in a bid to help Indian accounting firms grow larger, collaborate more freely and compete with global professional services networks, according to people familiar with the matter.
The proposed overhaul is expected to go beyond a narrow regulatory tweak. ICAI is understood to be working on revisions to networking and practice guidelines that govern how chartered accountancy firms can associate, share resources and expand their footprint. The broader objective is to create stronger domestic firms capable of handling larger mandates, retaining talent and serving Indian companies with increasingly complex cross-border needs.
Scale Push Begins
The initiative comes at a time when India's corporate sector is expanding rapidly, particularly in capital-intensive and regulation-heavy industries such as automotive, electric vehicles and mobility. As manufacturers, suppliers and mobility platforms raise capital, enter new markets and navigate tighter compliance demands, the need for deeper audit, tax, assurance and advisory capacity has grown sharply. Yet the domestic accounting market remains fragmented, with many firms operating at a scale well below that of global networks that dominate large assignments.
ICAI's planned changes are designed to address that structural gap. By allowing broader collaboration and more flexible practice arrangements, the institute hopes to encourage the emergence of larger professional entities that can pool expertise, invest in technology and compete for complex work that often migrates to multinational firms. The push also reflects a recognition that India's professional services ecosystem must evolve if it is to support the country's ambitions in manufacturing, exports and advanced mobility.
The timing is notable. Discussions at the Prime Minister's Office on regulatory adjustments for domestic companies have signalled a wider policy interest in strengthening Indian firms across sectors. In that context, ICAI's move appears aligned with a broader government-backed effort to improve the competitiveness of homegrown enterprises, not only in industry but also in the professional services that support them.
Rules Under Review
At the centre of the expected proposal are the rules governing networking and practice. Current frameworks can make it difficult for firms to combine capabilities at scale without running into restrictions on structure, branding, ownership or operational coordination. ICAI is now expected to revisit those provisions with an eye toward enabling more meaningful collaboration among firms while preserving professional standards and accountability.
That balance will be critical. Any relaxation of practice rules will need to ensure that independence, audit quality and ethical safeguards are not diluted in the pursuit of size. The institute is likely to face scrutiny from multiple sides: smaller firms may worry about consolidation pressures, while larger firms will want clarity on whether the changes are ambitious enough to create genuine scale rather than cosmetic partnerships.
For India's corporate clients, especially in sectors such as automotive and EVs where supply chains, regulatory filings, sustainability disclosures and financing structures are becoming more intricate, the prospect of larger Indian accounting firms could be significant. Domestic companies often prefer advisers who understand local regulation, tax policy and business realities, but they also need the capacity to deliver at the scale and sophistication expected in global markets.
Global Competition Stakes
The strategic logic is clear. India has built competitive strength in technology, manufacturing and services, but its accounting profession has not yet produced enough large firms with global reach. That matters because professional services are increasingly intertwined with industrial competitiveness. Companies expanding into EV manufacturing, battery supply chains, software-defined vehicles and mobility platforms need advisers who can support everything from due diligence and compliance to cross-border structuring and ESG reporting.
If ICAI's proposals move forward, they could mark one of the most consequential shifts in the profession in years. The changes would not instantly create global-scale firms, but they could remove long-standing barriers that have kept Indian practices small and locally confined. Over time, that could reshape the market for audit and advisory work, strengthen domestic capability and reduce dependence on foreign networks for large assignments.
The institute is expected to bring its proposals soon, after which the debate will likely move to the government and the legislative process. For now, the direction is unmistakable: India wants its accounting profession to grow up alongside its economy, and ICAI is preparing the rulebook for that transition.