From The Economic Times · ET Online · · 4m
India's push to build homegrown Big Four accounting firms
India is rewriting the rulebook to help domestic accounting firms scale up and compete globally against Deloitte, PwC, EY and KPMG.
In brief
India is rewriting the rulebook to help domestic accounting firms scale up and compete globally against Deloitte, PwC, EY and KPMG. India is moving beyond simply encouraging mergers to fundamentally changing laws around capital, multidisciplinary services and global networks to create globally competitive…
India wants its own Big Four
India is pushing to build domestic accounting firms that can compete globally against Deloitte, PwC, EY and KPMG. The Institute of Chartered Accountants of India is preparing changes to the Chartered Accountants Act to make this possible.
ICAI plans major rule changes
The Institute of Chartered Accountants of India expects to present amendments to the government within two months. These changes would recognise aggregation structures, allow capital infusion into accounting firms and give greater flexibility for consultancy work.
Opening doors to other professions
The proposed framework could bring company secretaries, cost accountants, advocates, engineers, architects and actuaries into these structures. This would let Indian firms offer the full range of services that global professional-services networks provide.
Why breadth matters for scale
Global firms compete by offering audit, tax, transactions, risk and consulting from one platform. Indian firms cannot realistically build a Big Four by stitching together audit practices alone. They need comparable breadth to win multinational clients.
Consolidation is already happening
Around 1,000 mergers of chartered accountant firms were approved between February and August 2026. Ten networking structures and 18 management consultancy companies were also registered during the same period.
Government backs the vision
Finance Minister Nirmala Sitharaman said in the February Budget that tax rules would be changed to support Prime Minister Modi's vision of homegrown accounting and advisory firms becoming global leaders.
Global networks hit a snag
ICAI introduced global networking guidelines in February but put implementation on hold in July after global firms objected to disclosure requirements. The issue became friction between the institute, domestic firms and foreign networks.
Big Four dominate India's market
KPMG, EY and Deloitte together account for nearly 45% of the market capitalisation of listed companies. The global Big Four collectively account for 51%, while 649 audit firms audit just one listed company each.
The sovereignty angle
The Prime Minister's Office examined possible restrictions on global audit networks for public-interest entities in sensitive sectors like defence, banking and telecom. The concern was that sensitive Indian corporate information could be accessed through foreign networks.
Government tweaks tender rules
The Finance Ministry instructed central government departments to avoid excessive turnover and net-worth requirements in consultancy tenders. The directive followed a review finding that some conditions effectively favoured large firms over smaller domestic ones.
Building track record through procurement
If domestic firms cannot qualify for government assignments because they are small, they have fewer opportunities to build the track record needed for bigger mandates. Procurement reform and CA Act changes work together to solve this.
Modi's decade-old ambition resurfaces
In 2017, Prime Minister Modi told chartered accountants that India should turn the global Big Four into a Big Eight, with four coming from India. The target did not materialise by 2022, but the idea has resurfaced with greater force this year.
Broader vision for all professions
Modi has broadened the argument beyond accounting to include consulting, legal and financial firms. He asked why Indian firms could not become global leaders when Indians already lead major companies around the world.
Integration is the real challenge
Mergers can create size but not automatically a coherent organisation. Firms must integrate partners, clients, technology platforms, quality systems and professional cultures to become globally competitive institutions.
Capital and independence matter
Global professional-services businesses invest heavily in technology, international offices and specialist talent. Indian firms need structures that permit comparable investment without compromising audit independence.
Global presence is essential
Domestic scale alone is not enough to become a global firm. Indian networks need offices, alliances, talent and clients outside India to truly compete on the world stage.
At a glance
India is moving beyond simply encouraging mergers to fundamentally changing laws around capital, multidisciplinary services and global networks to create globally competitive professional-services firms.
