Can India build its own Big Four? Rulebook battle on

India's push to create its own version of the global Big Four accounting firms is moving into a more critical stage. The Institute of Chartered Accountants of India (ICAI) is considering changes to the Chartered Accountants Act that could impact how Indian firms combine, raise capital, and provide professional services. These changes follow a year of efforts by the government and ICAI to make consolidation easier, foster global networking, and create more opportunities for domestic firms.

The immediate focus is on proposed amendments to the Chartered Accountants Act, which ICAI expects to submit to the government within two months. These changes would not only facilitate mergers but also allow capital infusion, enhance flexibility for Chartered Accountants in consultancy and advisory work, and expand their networking options. The proposed framework suggests that Indian firms could offer a broader range of services, akin to the global professional-services networks.

This proposal is crucial because merely combining audit practices is insufficient for India to build a Big Four firm. Global firms have extensive expertise in audit, tax, transactions, risk management, and advisory services. Indian firms would need comparable breadth to compete for multinational clients and large domestic mandates.

The current proposal represents the latest step in a reform process that began earlier this year, with ICAI revising merger and demerger rules in 2024 and allowing LLP-organized firms to aggregate.

Consolidation efforts have accelerated this year, with around 1,000 mergers of CA firms approved between February and August 2026. Additionally, 10 networking structures and 18 management consultancy companies were registered during this period. The government's support is evident, with Finance Minister Nirmala Sitharaman promising to change tax rules to help Indian accounting and advisory firms become global leaders.

However, building Indian firms also involves deciding the extent of foreign networks' influence, how domestic affiliates should interact with them, and how regulators should oversee these relationships. The global audit networks have been a point of contention, with global firms objecting to provisions related to disclosure of commercial arrangements, arm's-length dealings, and compliance responsibilities.

In April, there were discussions about potential restrictions on global audit networks for public-interest entities in sensitive sectors like defense and banking.