India to finalise new guidelines to foster Big Four equivalents

Core Insights - The Indian government is set to finalize a comprehensive plan to revamp regulations to support the establishment of large audit and consultancy firms similar to the Big Four by the March 2026 quarter [1] - Current statistics indicate that fewer than 1% of accounting firms in India have more than ten partners, underscoring the necessity for regulatory reforms [1] Group 1: Regulatory Changes - A committee led by corporate affairs secretary Deepti Gaur Mukerjee is examining regulatory obstacles that hinder domestic firms from scaling up, with findings expected to be published soon [2] - The government plans to first amend relevant legislation, followed by regulatory adjustments [2] Group 2: Current Landscape of Accounting Firms - Data from the Institute of Chartered Accountants of India (ICAI) shows that out of 100,138 registered chartered accountancy firms, only 459 have more than ten partners, and just 13 have more than 50 partners [3] - The 459 firms employ about 15% of the total workforce in the sector, which includes partners and paid assistants [3] - The top 13 accounting firms account for approximately 7% of the total number of partners and paid assistants, employing 1,349 partners and 11,543 paid assistants [3] Group 3: Strategic Discussions - Discussions on facilitating the growth of large domestic firms were held by Shaktikanta Das, principal secretary-2 to the prime minister, along with senior officials from the finance and corporate affairs ministries [4] - A strategy is being considered to relax rules and regulations to enhance the consolidation of local accounting firms [4] Group 4: Multidisciplinary Partnerships - The initiative includes the creation of multidisciplinary partnership firms, allowing easier partnerships with global firms and enabling these firms to operate and market themselves more freely [5] - The corporate affairs ministry has called for stakeholder input on allowing multidisciplinary partnership firms, which would enable professionals from various fields to collaborate within one firm [5] Group 5: Impediments and Global Ambitions - The ministry's memorandum identified several impediments in the current system, including prohibitions on advertising, disparate licensing regulators, restrictive public procurement practices, and limited international collaboration [6] - An event organized by the ICAI Dubai Chapter in August 2025 focused on India's ambition to create consulting firms that can compete globally, highlighting the need to enhance the consulting sector [6]