The Institute of Chartered Accountants of India is preparing to propose 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 planned overhaul comes at a time when India is trying to build stronger domestic professional champions across sectors, including automotive, electric vehicles and mobility, where complex transactions, cross-border supply chains and capital-intensive expansion are increasing demand for sophisticated audit, tax and advisory services. For firms serving manufacturers, EV startups, component suppliers and mobility platforms, the ability to scale quickly has become a strategic necessity rather than a long-term ambition.
Regulatory Reset
The proposed changes are expected to focus on the legal and operational framework that governs how chartered accountancy firms can network, associate and practice together. At present, India's professional services market remains fragmented, with many firms operating at a relatively small scale compared with the multinational networks that dominate large audits and advisory mandates.
By revising networking and practice guidelines, ICAI is seeking to create a structure that allows domestic firms to pool capabilities without losing professional identity or regulatory oversight. The objective is not merely administrative reform. It is to build larger entities capable of handling more complex work, retaining talent and competing for mandates that increasingly require multidisciplinary expertise.
The move also reflects a broader policy conversation within government about how Indian companies can be enabled to grow into globally relevant institutions. The Prime Minister's Office has reportedly discussed regulatory adjustments for domestic firms, underscoring the view that scale in professional services is now a competitiveness issue, not just a sectoral concern.
Why Scale Matters
For India's automotive and mobility ecosystem, the implications are significant. The sector is undergoing a structural transition driven by electrification, software integration, localisation of supply chains and rising investor scrutiny. Companies in this space need advisers who can manage everything from statutory audits and transfer pricing to merger structuring, ESG reporting and cross-border compliance.
Smaller firms often struggle to meet the breadth of these requirements, especially when clients expand into multiple jurisdictions or seek financing from global investors. Larger Indian firms, if enabled by law and regulation, could capture more of this work domestically rather than ceding it to international networks.
That shift could also improve the economics of professional services in India. Bigger firms can invest more heavily in technology, specialist teams and training, which in turn can raise service quality and support more consistent delivery across regions. For a fast-growing economy with increasingly complex corporate needs, that capacity is becoming essential.
What Changes May Follow
ICAI's expected proposal is likely to trigger a wider debate on how far India should liberalise the architecture of accountancy practice while preserving independence, ethics and audit quality. Any reform will need to balance scale with accountability, especially in a profession where public trust is central.
The institute is also expected to revisit rules around collaboration, networking and practice structures so that firms can work together more effectively. Such changes could open the door to stronger domestic alliances, shared service platforms and broader geographic reach, all of which are necessary if Indian firms are to compete with established global players.
The timing is notable. As India pushes manufacturing expansion, EV adoption and deeper integration into global value chains, the demand for high-end professional services is rising in parallel. Policy makers have increasingly recognised that industrial growth depends not only on factories and financing, but also on the institutions that support compliance, governance and capital formation.
If implemented, the ICAI-led changes could mark one of the most consequential shifts in India's accountancy landscape in years. The reform would aim to move the profession from a largely fragmented model toward a more consolidated and globally competitive structure, with potential spillovers across corporate India, including the rapidly evolving automotive and mobility sectors.
For now, the proposal remains in preparation, but the direction is clear: India wants its professional firms to grow up, scale up and compete on a larger stage.