The Institute of Chartered Accountants of India (ICAI) is advancing plans to introduce significant reforms aimed at empowering homegrown accounting firms to achieve a global scale. These measures, expected to be finalized within the next two months, represent a strategic move to enable Indian firms to rival major international consulting giants.
Multidisciplinary Firms and Expanded Collaboration
A central proposal under consideration is the relaxation of networking guidelines to allow CA firms to collaborate with other professional entities. This would facilitate the formation of multidisciplinary firms, enabling CAs to partner with Company Secretaries, lawyers, and consulting firms.
Such partnerships would allow these expanded entities to offer comprehensive, holistic advisory services to companies, positioning them to compete more effectively with global consulting powerhouses. ICAI officials indicate that this proposal has undergone internal discussions and awaits approval from the ICAI Central Council and the Ministry of Corporate Affairs. An amendment to the Chartered Accountants’ Act would also be necessary to implement this change.
Government Support Critical for Growth
Beyond internal reforms, ICAI emphasizes the need for greater government support to truly unlock the potential for scale among domestic CA firms. This includes advocating for the recognition of aggregation structures, removing obstacles in securing government consulting contracts, and providing infrastructure and capital infusion for Indian firms. Tax incentives for aggregation models are also being sought.
These initiatives align with the government's broader objective of fostering homegrown consulting firms capable of operating on a global stage, mirroring the success of the 'Big Four' international firms.
Recent Progress in Firm Aggregation
The ICAI has already taken steps to encourage consolidation and collaboration within the industry. Data from February to August 2026 shows that the ICAI approved approximately 1,000 CA firm mergers. During the same period, 10 new networking structures were established, and 18 management consultancy companies registered with the ICAI, indicating a growing trend towards larger, more integrated professional service providers.