India is laying the groundwork to establish a home-grown mega-sized Chartered Accountancy (CA) firm that can compete globally with the Big Four firms. The Institute of Chartered Accountants of India (ICAI) and the Ministry of Corporate Affairs are spearheading efforts to facilitate the growth and expansion of Indian CA firms on the international stage.
ICAI President Ranjeet Kumar Agarwal revealed that a Committee for Aggregation of CA firms has been formed to develop guidelines for networking, multidisciplinary partnerships, international networking, mergers and demergers, and advertisement. Agarwal emphasized that empowering Indian CA firms to go global is a priority, with the ministry of corporate affairs showing keen interest in supporting their growth trajectory.
Currently, India boasts around 96,000 CA firms, with the majority being small and medium-sized enterprises. To enhance their competitiveness, the focus is on encouraging mergers and partnerships among these firms. Agarwal highlighted that while Indian firms possess the talent and potential to expand globally, they require support and incentives to scale up effectively.
India’s pool of skilled CAs, numbering around 160,000 practicing professionals out of a total of 400,000, demonstrates the nation’s vast talent reservoir in the accounting domain. Prime Minister Narendra Modi had earlier emphasized the need to create four big Indian accounting firms to rival the global giants.
The absence of Indian CA firms among the Big Four—PwC, Deloitte, EY, and KPMG—has been a notable gap in the global accounting landscape. By fostering the growth of mega-sized CA firms domestically, India aims to bridge this gap and establish a strong presence in the global accounting sector.
Efforts to support the growth of Indian CA firms align with the government’s broader vision of enhancing the country’s competitiveness and stature on the global stage. As India continues to prioritize economic reforms and innovation, the development of robust indigenous CA firms is poised to contribute significantly to the nation’s economic growth and international standing.