A New Vision from the Ministry of Corporate Affairs (GOI)
India is set to overhaul its consulting, audit and advisory regulations to cultivate homegrown champions capable of competing directly with the global “Big Four” firms (Deloitte, PwC, EY, and KPMG). Reforms currently being deliberated by the government, aim to level the playing field for domestic firms. Proposed changes include relaxing advertising rules for professionals like chartered accountants, company secretaries, cost accountants and lawyers, enabling multi-disciplinary partnerships, and restricting foreign advisory firms from bidding on government contracts. These changes are necessary to correct structural disadvantages; despite having talent, domestic firms are unable to build brands and scale because of outdated rules like the ban on advertising and to provide integrated services under one roof.
Policy Shift and Rationale
The Indian government, through the Ministry of Corporate Affairs, is promoting the creation of domestic multidisciplinary partnership (MDP) firms to challenge the global dominance of the Big Four accounting firms. The initiative, aims to achieve this by easing regulations on advertising and mergers, fostering collaborations, creating a favorable regulatory environment, and promoting a unified digital platform for the Indian accounting profession, The goal is to build domestic capacity, retain talent, and foster economic self-reliance, a key objective under the Atmanirbhar Bharat (Self-Reliant India) campaign.
A recent High-level deliberation of an inter-ministerial meeting at the Prime Minister’s Office (PMO), led by senior figures including Principal Secretary Shaktikanta Das, has significantly advanced a major overhaul of the professional services sector. The group examined amending both procurement rules and the Companies Act. These changes are intended to permit multi-disciplinary partnerships, allowing professionals like chartered accountants, company secretaries, cost accountants, lawyers, and actuaries to form integrated firms. Officials argue this shift would align India with global best practices and directly bolster the “Make in India” initiative by giving domestic firms an advantage in government consulting opportunities. This move is critical because, unlike countries such as the U.S. which already favor domestic firms for government work, India’s advisory market remains heavily reliant on foreign-led networks (Big 4’s).
The Inter Ministerial Group (IMG) formed to build the domestic ecosystem of consulting and auditing firms, which will be chaired by the MCA Secretary. Stakeholders have been invited to share their views on the proposal by 30th September 2025.
Domination and Proposed Solution
The $240 billion global consulting and auditing market is overwhelmingly controlled by international firms, a pattern mirrored in India where the Big Four audit 67% of Nifty 500 companies. Domestic Indian firms, conversely, are fragmented and held back by regulations that prevent them from achieving the necessary scale and diversification to compete. Industry experts, like Nilaya Varma of Primus Partners, view the government’s proposals as a crucial chance to gain a competitive edge. However, critics warn that simply changing regulations isn’t enough; Indian firms must also significantly boost their capacity in technology, data analytics, and global audit practices to truly challenge the incumbents.
Modernization and Global Competitiveness
India is pushing its professional services sector, including bodies like the ICAI and ICSI, to modernize by mandating advanced training in technologies like AI and robotic process automation. This shift signals a move away from India’s traditionally cautious regulatory stance. The ultimate goal for policymakers is two-fold: to reduce reliance on foreign consulting firms in critical sectors and to propel domestic Indian firms to become global leaders in audit and advisory services. “We want to build a domestic ecosystem that isn’t just regionally strong, but globally competitive,” notes one official close to the discussions.
Summary of the Office Memorandum & Background Note issued by MCA on MDP Firms
The OFFICE MEMORANDUM dated 17th September 2025 issued by Ministry of Corporate Affairs (MCA), it invites public comments on a background note regarding the establishment of Indian Multi-Disciplinary Partnership (MDP) firms to help Indian firms compete with international players. The deadline for comments is September 30, 2025.
The background note that identifies key challenges currently faced by Indian firms:
- Absence of integrated, end-to-end service models.
- Lack of global networks.
- Structural and regulatory challenges that prevent firms from growing.
- Restrictions on advertising and marketing for certain professionals.
- Fragmented licensing regimes across different professions.
The MCA’s initiative aims to address these issues by amending relevant acts and regulations to support the growth of domestic MDPs and enhance their international competitiveness.
The background note outlines the following key points:
1. Objective: The Government of India is committed to enabling the growth of large Indian firms that can compete with international players. The goal is to facilitate the establishment of MDPs and strengthen Indian firms to compete globally.
2. Current Landscape: The global consulting and auditing industry is valued at nearly $240 billion, dominated by international firms. Indian firms are considered marginal players due to structural and regulatory barriers. The document highlights the strengths of international firms, including their integrated multidisciplinary services, global networks, strong brands, stable partnership structures, and investment in technology and talent development.
3. Issues to Address: The document identifies several challenges that need to be addressed to help Indian firms grow:
- Advertising and Marketing Ban: Restrictions on advertising prevent Indian professional firms from building strong brands and competing with multinational firms that can freely advertise.
- Restrictions on MDPs: Current regulations prevent professionals like chartered accountants, company secretaries, and lawyers from working together under a single firm, which limits collaboration and innovation.
- Fragmented Licensing: Separate regulators for each profession create silos and hinder the development of multidisciplinary firms.
- Public Procurement and Empanelment: Stringent eligibility conditions in high-value assignments, such as a requirement for high global turnover or international presence, often disadvantage Indian firms.
- Limited Global Collaboration: Indian firms operate largely in silos with limited access to global collaboration platforms, which restricts their ability to serve multinational clients seamlessly.
Framework of Professional Bodies
While the MCA is working on a broader framework, key professional bodies (ICAI, ICSI & ICMAI) in India have already established their own guidelines for MDPs.
1. The Institute of Chartered Accountants of India (ICAI)
The ICAI’s guidelines, which came into effect in July 2021, permit a Chartered Accountant (CA) in practice to form an MDP with members of six other professional bodies:
- Company Secretaries
- Cost Accountants
- Advocates
- Engineers
- Architects
- Actuaries
For an MDP to perform a statutory audit, the majority of the partners, both by number and by profit share, must be Chartered Accountants. The ICAI’s framework allows for MDPs to be constituted as either a partnership firm or a Limited Liability Partnership (LLP) but not as a company.
2. The Institute of Company Secretaries of India (ICSI)
The ICSI also has regulations in place that allow a Company Secretary in practice to enter into an MDP. These partnerships can be formed with members of other professional bodies, including:
- Chartered Accountants
- Cost Accountants
- Advocates
- Architects, and
- Actuaries
The ICSI guidelines permit both partnership and LLP structures for MDPs.
3. The Institute of Cost Accountants of India (ICMAI)
The ICMAI has released draft guidelines for the formation of MDPs, which allow a Cost Accountant (CMA) to partner with:
- Chartered Accountants
- Company Secretaries
- Engineers
- Architects
- Actuaries
The draft guidelines state that an advocate cannot become a partner in a CMA’s MDP until the rules of the Bar Council of India are amended. An MDP with a majority of CMA partners must be registered with the ICMAI, and those with a minority of CMA partners may also register with the institute. A key point is that an MDP is not required to have multiple registrations with all professional institutions whose members are partners.
Initiative by Institute of Company Secretaries of India (ICSI)
ICSI conducts & offers various webinars to enhance its members knowledge. ICSI does this by offering Capacity Building Series & by Enable, Evaluate Excel, Series.
The “Capacity Building Series” initiative of ICSI for its members to enhance their knowledge and skills in various emerging and less-explored areas of professional practice, such as FEMA, GST, Corporate Restructuring, ESG Analysis, and Forensic Audit. This initiative typically involves webinars that cover basic concepts, legal aspects, professional opportunities, and the required skill sets for each topic.
The Enable, Evaluate, Excel (EEE) series is also an a capacity-building initiative for its members. This ongoing webinar series, which began in 2017, helps members update their knowledge of corporate laws, including the Companies Act, 2013, through expert-led sessions. Members also have the opportunity to take optional online self-evaluation tests to gauge their understanding and prepare for future challenges in the profession. The series is now in its fifth iteration, EEE 5.0 – Master Knowledge Series, continuing to focus on contemporary and professionally relevant topics, and also includes a separate Capacity Building Series, with recent examples covering topics like GST.
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