The Institute of Chartered Accountants of India is preparing to propose changes to the Chartered Accountants Act, in a significant policy push designed to help Indian accounting firms expand in size, capability and international reach. The move comes amid a broader government and regulatory conversation about how domestic professional services firms can be strengthened to compete with large global networks that dominate audits, advisory work and cross-border mandates.
The planned changes are expected to focus on easing restrictions that have long shaped the structure of the Indian accounting market. At present, many firms remain relatively small and fragmented, limiting their ability to bid for large assignments, build specialised teams or serve multinational clients at scale. By revisiting the legal and regulatory framework, ICAI is seeking to create conditions under which firms can collaborate more freely, pool expertise and evolve into larger professional entities.
Regulatory Reset
The proposal is understood to include revisions to networking and practice guidelines, a technical but consequential area that governs how chartered accountancy firms can associate with one another. Such rules matter because they determine whether firms can share resources, coordinate on client work and present themselves as integrated service providers. For India's accounting sector, where many practices are still built around individual partners or compact partnerships, these restrictions have often acted as a ceiling on growth.
The timing is notable. Discussions at the Prime Minister's Office on regulatory adjustments for domestic companies suggest that the issue is being viewed not merely as a professional-services matter, but as part of a wider competitiveness agenda. Policymakers have increasingly focused on building Indian enterprises that can operate at global scale, whether in manufacturing, technology, financial services or mobility-linked sectors that require complex compliance and assurance support.
That broader context is relevant to the automotive and EV ecosystem as well. As India's vehicle makers, battery companies, charging-network operators and mobility platforms expand, they are generating demand for sophisticated audit, tax, transaction and advisory services. Larger accounting firms could be better positioned to support these businesses across supply chains, capital raising, regulatory reporting and overseas expansion.
Bigger Firms, Broader Reach
The push by ICAI reflects a recognition that the structure of the profession must evolve if Indian firms are to compete with international accounting networks that already operate with scale, brand recognition and deep specialisation. Global firms can deploy large teams across jurisdictions and offer bundled services that smaller Indian practices often struggle to match. Without regulatory reform, domestic firms may continue to lose out on large mandates, especially those involving multinational clients or complex cross-border transactions.
A more flexible framework could also encourage consolidation and formal collaboration among firms that have historically operated independently. That would not necessarily mean the creation of a few giant partnerships overnight. But it could allow the profession to develop larger, more capable entities with stronger governance, deeper benches of talent and better technology investment. In turn, that may improve service quality and create more resilient firms.
The challenge will be to balance scale with professional standards. Any relaxation of rules is likely to draw scrutiny over independence, conflict management and audit quality, especially in a profession where public trust is central. ICAI will therefore need to ensure that proposed changes preserve safeguards even as they open the door to broader collaboration.
What Comes Next
ICAI is expected to bring forward its proposals soon, after which the changes would require the usual policy and legislative process before becoming effective. The details will matter. The extent of permissible networking, the scope of practice integration and the treatment of shared branding or client servicing arrangements will determine whether the reform is transformative or merely incremental.
For India's professional services sector, however, the direction is clear: the country wants firms that are not only locally credible but globally competitive. In that sense, the ICAI initiative is part of a larger economic ambition to build domestic institutions that can match the scale, sophistication and reach of international rivals. If implemented carefully, the reforms could mark an important step toward a more consolidated and competitive accounting landscape in India.