The Institute of Chartered Accountants of India is preparing to put forward changes 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 overhaul is expected to focus on rules governing networking, practice structures and broader collaboration among firms, reflecting a growing policy push to strengthen domestic professional services players in global markets.
Regulatory Reset
The move comes at a time when Indian firms across sectors are under pressure to match the scale, specialization and cross-border capabilities of global competitors. In professional services, size matters: larger firms are better placed to invest in technology, compliance systems, sector expertise and international delivery models. For chartered accountancy practices, the current regulatory architecture has long been seen as a constraint on consolidation and coordinated growth.
The ICAI's planned proposals are expected to seek amendments that would make it easier for firms to network, share resources and potentially operate with greater flexibility while remaining within professional standards. Such changes could help Indian firms build the kind of multi-disciplinary and multi-location platforms that are increasingly necessary to serve large corporations, including those in fast-expanding sectors such as automotive, electric vehicles and mobility.
The timing is significant. India's industrial and mobility transition is creating more complex audit, tax, advisory and compliance requirements for manufacturers, suppliers, battery makers, charging infrastructure companies and mobility platforms. As these businesses scale, they require accounting firms that can handle sophisticated reporting, regulatory scrutiny and cross-jurisdictional work. Smaller standalone practices often struggle to match that demand.
Global Scale Push
The broader policy backdrop suggests the government is receptive to reforms that could help Indian firms become more globally competitive. Discussions at the Prime Minister's Office on regulatory adjustments for domestic companies indicate that the issue is being viewed not merely as a profession-specific matter, but as part of a wider economic strategy to build stronger Indian institutions capable of competing internationally.
For the accounting profession, the challenge has been structural. India has a large base of qualified chartered accountants, but the market remains fragmented, with many firms operating at a relatively small scale. This limits their ability to bid for large assignments, attract specialized talent and invest in systems that global clients increasingly expect. If the ICAI's proposals are adopted, they could open the door to more formal collaboration and a gradual consolidation of the market.
That would also have implications for governance and quality control. Any relaxation of networking or practice rules would need to be balanced with safeguards to preserve independence, audit integrity and professional accountability. Regulators are likely to face the delicate task of encouraging scale without weakening the standards that underpin trust in the profession.
What It Means Next
The proposed changes are likely to be closely watched by mid-sized firms that have long argued that India's regulatory framework does not adequately support growth beyond a certain threshold. Larger firms could benefit from the ability to expand service lines and geographic reach, while smaller practices may see new opportunities to join broader networks rather than compete alone.
For the automotive and mobility ecosystem, the reforms could eventually improve access to more capable accounting and advisory support at a time when the sector is becoming more capital-intensive and compliance-heavy. EV manufacturers, component suppliers and mobility startups are all operating in an environment where financing, reporting and regulatory obligations are becoming more complex.
The ICAI's move signals a recognition that India's professional services sector must evolve if it is to support the country's economic ambitions. By revisiting the rules that govern how chartered accountants can collaborate and practice, the institute is effectively testing whether the profession can be reshaped into a platform for scale rather than remaining a collection of small, independent operators.
If the proposals advance, the next phase will likely involve detailed consultation on the scope of amendments, the boundaries of permissible collaboration and the safeguards needed to protect audit quality. But the direction is clear: India wants accounting firms that are not only compliant and competent, but large enough to compete on a global stage.