In an industry dominated by global giants like Deloitte, PwC, EY, and KPMG, India’s accounting profession is attempting to consolidate its fragmented domestic landscape. The Institute of Chartered Accountants of India (ICAI) is building a digital networking platform designed to facilitate mergers, tie-ups, and resource-sharing among local chartered accountancy firms. The initiative, ICAI officials say, is aimed at helping thousands of practitioners expand into new practice areas, cover geographical gaps, and strengthen service delivery.
ICAI president Charanjot Singh Nanda described the effort as a “crucial step” in creating homegrown firms of scale, noting that Prime Minister Narendra Modi himself had earlier called for the creation of at least four large domestic accounting firms capable of competing globally.
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The Big Four Benchmark
India’s audit and accounting market is still dominated by the Indian affiliates of the “Big Four”—EY, Deloitte, PwC, and KPMG—whose networks handle a large share of assignments for global corporations operating in India. These firms have the advantage of strong global ecosystems, integrated service lines, and deep pools of expertise, giving them a competitive edge over smaller Indian practices.
By contrast, most of India’s chartered accountants operate as small or mid-sized firms with limited geographical reach. The ICAI hopes that its proposed platform can act as a matchmaking service, bringing such firms together to share strengths and form larger entities capable of handling more complex, cross-border assignments.
Aligning With Government’s Vision
The move aligns with the government’s stated ambition of making Indian firms globally competitive. In June, the Prime Minister’s Office convened a meeting with ICAI leadership to emphasize the importance of creating stronger domestic professional services firms. Officials argued that India’s expanding economy required accounting and audit firms of a scale comparable to international players, particularly to service multinational corporations operating within India’s borders.
The ICAI’s portal, now in development, is expected to serve as a digital hub for firms seeking partners, whether for mergers, resource pooling, or specialized service expansion.
Challenges and Opportunities
Analysts caution, however, that the push toward consolidation may face challenges. Firm culture, governance practices, and client loyalties often complicate mergers in professional services. Moreover, many small and mid-sized firms may resist consolidation due to fears of losing independence or local identity.
Still, the ICAI believes that a structured digital platform could help overcome such barriers by offering transparency, due diligence tools, and standardized guidelines for partnerships. If successful, it could provide a pathway for Indian firms to close the gap with global competitors while expanding opportunities for the country’s 400,000 registered chartered accountants.