A roadmap to build Indian global accounting networks
The Institute of Chartered Accountants of India (ICAI) has been endeavouring, for more than the last two decades, to establish a suitable regulatory framework that promotes networking among accounting firms. However, it has not succeeded in providing one that is conducive to fostering domestic global accounting networks. The draft guidelines for overseas networks, notified by the ICAI on June 6, 2025, for public comment, represent yet another effort in this direction. But the exposure draft, as it currently stands, may again fall short of the comprehensive regulatory reform required for real transformation.
The committee reportedly being set up by the Government of India (GoI), under the chairmanship of the Secretary, Ministry of Corporate Affairs, offers hope that legal and regulatory impediments will be addressed. But more importantly, it must also consider fiscal measures to promote financing, capacity building, and nationwide as well as global reach for accounting firm networks. It must tackle the constraints small firms face in scaling up.
It is ironical that while Indian start-ups often become unicorns or go global in just a few years, the accounting profession—despite a 75-year legacy—still lacks a single firm with a truly nationwide or global footprint. Low audit fees in India make it difficult for firms to survive, much less grow, consolidate, or invest in technology, innovation, or talent retention. Even if the regulatory framework is improved, these firms will still not have the financial muscle to scale up. In such an environment, many capable Indian firms choose to affiliate with international networks rather than build their own.
The GoI must develop mechanisms to meet the investment needs of accounting networks without compromising audit independence. Just as start-ups benefit from seed funding and soft loans, accounting firms could also be supported via a dedicated government-backed fund offering equity or soft loans for their growth plans.
A calibrated policy allowing private equity (PE) investments in accounting firms can offer the required capital infusion. The common concern that PE compromises auditor independence may not hold when proper safeguards are in place.
Private equity investment in accounting firms is increasing globally, including in the US and UK. It has helped invested firms become technologically advanced, globally competitive, and capable of attracting top talent. These firms have improved their national and global rankings. The experience and growth focus of PE investors, along with their emphasis on valuation, can positively impact audit quality.
