The Institute of Chartered Accountants of India is preparing a significant push to reshape the legal and regulatory framework governing the profession, with proposed changes to the Chartered Accountants Act expected soon. The initiative is aimed at helping Indian accounting firms grow larger, collaborate more freely and compete more effectively with global professional services networks that dominate cross-border advisory, audit and compliance work.
The planned changes come at a time when India's corporate landscape is becoming more complex, especially in sectors such as automotive, electric vehicles and mobility, where companies face rising demands for audit depth, tax structuring, regulatory compliance and transaction support. As domestic manufacturers, suppliers and mobility startups expand across markets, the need for larger homegrown accounting firms with broader capabilities has become more pressing.
Scale For Global Competition
At the centre of the reform effort is the recognition that Indian firms remain relatively fragmented compared with the large international networks that serve multinational clients. The ICAI's proposed changes are expected to focus on networking and practice rules, with the aim of allowing firms to collaborate more extensively and build larger professional entities without running into restrictive regulatory barriers.
The broader policy conversation has also reached the Prime Minister's Office, where regulatory adjustments for domestic companies have been discussed. While the exact contours of the proposed amendments have not been formally disclosed, the direction is clear: India wants its professional services ecosystem to be capable of supporting the country's expanding corporate ambitions rather than remaining structurally too small for the scale of demand.
For the accounting profession, this could mark an important shift. Indian firms have long been constrained by rules that make it difficult to consolidate talent, expand practice footprints or create integrated national platforms with the heft of global competitors. If the ICAI's proposals move forward, they could open the door to more flexible partnerships, wider networks and stronger institutional capacity.
Why Mobility Firms Care
The implications extend beyond the profession itself. Automotive and mobility companies, particularly those in the EV supply chain, operate in a fast-changing environment shaped by capital-intensive manufacturing, cross-border sourcing, incentive-linked investments and evolving disclosure requirements. Larger accounting firms with deeper technical bench strength could be better positioned to advise on complex audits, transfer pricing, ESG reporting, financing structures and regulatory filings.
This matters because India's mobility transition is no longer confined to vehicle assembly. It now includes battery manufacturing, charging infrastructure, software-defined vehicles, fleet operations and new-age financing models. Each of these segments requires sophisticated professional services support, often across multiple jurisdictions. Domestic firms that can scale up may be able to capture more of that work, reducing reliance on the global Big Four and other multinational consultancies.
The reform push also reflects a broader economic policy objective: building Indian champions in services, not just in manufacturing. As the country seeks to position itself as a global business hub, the strength of its audit and advisory ecosystem becomes strategically important. Larger Indian firms could retain more value within the domestic economy, create more high-skill jobs and improve the country's ability to service both local and international clients.
Regulatory Shift Ahead
The ICAI's expected proposal will likely trigger close scrutiny from regulators, industry groups and senior practitioners. Any changes to the Act would need to balance growth and competition with audit quality, independence and professional ethics. That tension is central to the debate: policymakers want stronger firms, but they also need safeguards that preserve trust in financial reporting.
The timing is notable. India is pushing for deeper industrial expansion, faster EV adoption and greater integration into global supply chains. In that environment, professional services are increasingly viewed as strategic infrastructure. If the ICAI can help create larger, more capable accounting firms, it could strengthen the country's corporate backbone at a moment when scale, compliance and credibility matter more than ever.
The next steps will be watched closely by the profession and by companies across the automotive and mobility ecosystem. For now, the message from the policy side is unmistakable: India wants its accounting firms to think bigger, collaborate more and compete on a global stage.