India to Build Its Own Big Four! Govt Encourages Domestic Firms to Partner Globally
India launches a bold plan to build its own “Big Four,” empowering domestic audit firms to expand, merge, and partner globally.
India to Build - Own Big Four - Govt Encourages Domestic Firms - Partner Globally - taxscan
India to Build - Own Big Four - Govt Encourages Domestic Firms - Partner Globally - taxscan
The Indian government is preparing a major push to strengthen the country’s accounting and auditing sector by helping local firms expand and compete on the world stage. The goal is to build India’s own “Big Four”, similar to global giants Deloitte, PwC, EY, and KPMG.
According to the TOI, India’s audit industry is largely fragmented. According to the Institute of Chartered Accountants of India (ICAI), fewer than one percent of registered firms have more than 10 partners, and only 13 firms have more than 50 partners. This small scale has limited their ability to handle large corporate clients or participate in international projects.
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To address this, the Ministry of Corporate Affairs (MCA) has formed a panel led by Corporate Affairs Secretary Deepti Gaur Mukerjee to review laws that restrict mergers, expansions, and global tie-ups. The committee is expected to suggest changes that could be implemented within this financial year.
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The government is considering reforms that would allow multidisciplinary partnerships (MDPs) where professionals from accounting, legal, and consulting backgrounds can work under one firm. Other proposed measures include allowing firms to advertise, raise capital, and collaborate more freely with global networks. These steps are expected to help domestic firms tap into the 240 billion dollar global auditing and consultancy market.
This is not the first time India has attempted to reform its professional services sector. In 2018, the government and ICAI jointly launched initiatives to increase audit quality and transparency after several corporate accounting scandals.
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Earlier, in 2021, the National FinancialReporting Authority (NFRA) had also suggested that Indian audit firms should consolidate to strengthen their capabilities. However, those efforts were limited in scope and did not focus on global expansion.
The new initiative represents a more ambitious approach. It combines regulatory reform with encouragement for international partnerships, signaling the government’s intention to make Indian firms global competitors.
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