India moves to reshape accounting law to foster homegrown professional services giants

The Institute of Chartered Accountants of India is preparing revisions to the Chartered Accountants Act that would make it easier for Indian accounting and advisory firms to merge, raise capital and offer a wider range of services. The draft framework envisions a networking model that could incorporate company secretaries, cost accountants, advocates, engineers, architects and actuaries, mirroring the multidisciplinary structure of global professional-services firms.

Government backing came in the February budget, where Finance Minister Nirmala Sitharaman announced tax rule changes to support Prime Minister Narendra Modi’s vision of home-grown firms becoming global leaders. Since 2024, ICAI has relaxed merger rules, and between February and August 2026 roughly 1,000 CA firm mergers were approved, alongside the registration of new networking and consultancy entities. Earlier this year, ICAI’s attempt to allow domestic firms to join global networks was halted after objections over disclosure requirements, highlighting the tension between expanding domestic capability and regulating foreign involvement. The reforms aim to address the concentration of audit work among the global Big Four and to position Indian firms for larger domestic and overseas mandates.