The Institute of Chartered Accountants of India is preparing to propose changes to the Chartered Accountants Act in a bid to create a more enabling framework for Indian accounting firms to grow in scale, deepen their capabilities and compete more effectively with global professional services networks.
The planned overhaul comes at a time when India's professional services sector is under pressure to modernise its structure, particularly in areas such as audit, advisory, tax and compliance, where large international firms often have a significant advantage in reach, technology and cross-border execution. For Indian firms, the central challenge has long been fragmentation: many practices remain relatively small, partner-led and constrained by rules that limit deeper consolidation and collaboration.
Regulatory Reset
The proposed changes are expected to focus on the legal and regulatory architecture governing chartered accountancy practice, including provisions that shape how firms can network, collaborate and expand. According to the broad contours of the initiative, ICAI intends to revise existing networking and practice guidelines so that firms can work together more flexibly and build larger professional entities without running afoul of current restrictions.
The move is also aligned with wider policy discussions at the government level. The Prime Minister's Office has reportedly examined regulatory adjustments affecting domestic companies, signalling that the issue is not merely a professional body's internal reform but part of a broader push to strengthen Indian enterprise in high-value services. In that context, ICAI's proposal could become an important test case for how India balances professional oversight with market expansion.
For the accounting profession, the implications are substantial. Larger firms are generally better positioned to invest in technology, specialist talent, sector expertise and international delivery capabilities. They can also serve multinational clients more effectively, especially in areas such as transfer pricing, ESG reporting, forensic accounting, transaction support and complex regulatory compliance. Those capabilities are increasingly relevant as Indian companies expand overseas and global companies deepen their India operations.
Bigger Firms, Broader Reach
The push for larger accounting firms reflects a wider recognition that India's domestic professional services ecosystem must evolve if it is to capture more of the value chain. In many mature markets, accounting and advisory firms have consolidated into large partnerships or networks capable of serving clients across jurisdictions. Indian firms, by contrast, have often remained smaller and more localised, limiting their ability to compete for large mandates.
ICAI's planned reforms may therefore be aimed at removing structural bottlenecks rather than simply encouraging growth for its own sake. By revisiting networking rules, the institute could make it easier for firms to pool resources, share expertise and present a more unified market offering. That would be particularly important for firms seeking to serve sectors such as automotive, electric vehicles and mobility, where clients increasingly need integrated advice across finance, regulation, supply chains and technology.
The timing is notable. India's automotive and EV ecosystem is expanding rapidly, with manufacturers, suppliers and mobility startups all facing a more complex compliance environment. As the sector scales, demand is rising for larger advisory practices that can support audits, fundraising, restructuring, cross-border transactions and regulatory filings. A more consolidated accounting landscape could help domestic firms capture that opportunity rather than ceding it to global competitors.
At the same time, any reform of the Chartered Accountants Act will need to preserve professional independence, audit quality and ethical safeguards. Larger firms can bring scale, but they also raise questions about concentration, conflict management and oversight. That means the forthcoming proposals are likely to be scrutinised closely by practitioners, regulators and policymakers alike.
What Comes Next
ICAI is expected to move ahead with formal proposals soon, after which the changes would require the usual legislative and regulatory process. The details will matter. Whether the institute seeks limited amendments or a broader restructuring of practice rules will determine how transformative the reform can be.
Even so, the direction of travel is clear. India is signalling that it wants its professional services firms to grow larger, stronger and more globally competitive. For the chartered accountancy profession, that could mark the beginning of a significant structural shiftāone that may reshape how Indian firms organise themselves, compete for clients and participate in the global market for high-end advisory services.