The Institute of Chartered Accountants of India is preparing to put forward changes to the Chartered Accountants Act in a bid to help Indian accounting firms grow larger, collaborate more freely and compete more effectively with global professional services networks, according to people familiar with the matter.
The proposed changes are expected to be framed around a broader policy push to strengthen domestic firms in sectors where scale, technical depth and cross-border capability increasingly determine competitiveness. While the immediate focus is on the accounting profession, the implications extend well beyond audit and assurance. Larger and more integrated advisory firms are seen as essential to supporting India's expanding corporate base, including companies in automotive, electric vehicles and mobility, where capital intensity, regulatory complexity and supply-chain transformation are all rising.
Regulatory Reset Ahead
The ICAI's planned proposal is understood to include amendments to the legal and regulatory framework governing practice, networking and collaboration among chartered accountants. At present, the structure of the profession has often been criticised for making it difficult for Indian firms to consolidate into larger entities capable of matching the breadth of services offered by multinational firms.
According to the context of the discussions, the Prime Minister's Office has also examined regulatory adjustments for domestic companies, signalling that the issue is being viewed as part of a wider competitiveness agenda rather than a narrow professional-services reform. The objective is not merely to loosen rules, but to create a framework that allows Indian firms to build scale without compromising independence, quality control or professional standards.
For the accounting sector, scale matters. Large firms can invest more heavily in technology, sector-specific expertise, forensic capabilities, tax advisory and international compliance. They are also better positioned to serve clients that operate across jurisdictions or are preparing for public markets, mergers, acquisitions and complex financing transactions. That need is especially visible in fast-changing industries such as mobility and electric vehicles, where companies must navigate incentives, localisation requirements, ESG disclosure demands and evolving supply-chain risks.
Bigger Firms, Broader Reach
ICAI is expected to revise its networking and practice guidelines to make broader collaboration easier among firms and practitioners. Such changes could encourage more formal alliances, shared service models and larger practice structures, potentially allowing Indian firms to pool talent and compete for mandates that currently gravitate toward global networks.
The push reflects a longstanding concern within India's professional ecosystem: the country has a large base of qualified accountants, but relatively few firms of significant size. That fragmentation has limited the ability of domestic practices to bid for large audits and advisory assignments, particularly those involving multinational clients or complex cross-border work. Policymakers and industry participants have increasingly argued that India's economic ambitions require professional firms that are not only numerous, but also institutionally robust.
The timing is notable. India's corporate landscape is becoming more sophisticated, with manufacturing, mobility and clean-tech businesses seeking deeper financial advisory support as they scale production, raise capital and expand supply chains. In the automotive and EV ecosystem, firms are grappling with rapid technology shifts, battery sourcing, localisation strategies and regulatory scrutiny. Larger accounting firms could play a more central role in helping such businesses manage compliance, internal controls and transaction readiness.
The reform agenda also aligns with a broader national interest in building domestic champions in services, much as India has sought to do in manufacturing and digital infrastructure. If implemented, the changes could reshape the economics of practice for chartered accountants, enabling more efficient use of talent and creating stronger platforms for succession, specialization and geographic expansion.
Competition With Global Networks
The underlying policy logic is clear: Indian firms should not remain structurally disadvantaged in a market where clients increasingly expect integrated, multi-disciplinary advice. Global accounting networks have long benefited from scale, brand recognition and the ability to deploy specialists across borders. Domestic firms, by contrast, have often remained smaller and more localised, even when they possess strong technical credentials.
Any amendment to the Chartered Accountants Act would therefore be closely watched by the profession, corporate India and regulators. The details will matter. The balance between enabling growth and preserving audit independence will be central to the debate, as will safeguards around quality assurance, conflict management and ethical standards.
For now, the direction of travel is unmistakable. ICAI is preparing to seek a legal and regulatory framework that could allow Indian chartered accountancy firms to become larger, more capable and more globally relevant. If the proposal gains traction, it could mark one of the most consequential structural shifts in the profession in years, with ripple effects across India's corporate and mobility sectors.