India plans to ease rules for CA, law & consultancy firms to grow at global scale, enabling a homegrown “Big Four.” Here’s what it means for the sector.

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In a significant move, the Government of India is pushing ahead with plans to fast-track regulatory reviews that currently restrict the growth of domestic audit and consultancy firms. The objective: to enable Indian firms to compete at a global scale and even nurture a homegrown “Big Four.” The Economic Times

 

What’s Being Proposed

1.    Relaxing Restrictions on Mergers & Aggregations
The government is exploring easing the rules to allow smaller accounting firms to merge or aggregate, thereby increasing scale and depth of service offerings. The Economic Times

2.    Allowing Multidisciplinary Partnership (MDP) Firms
A key proposal is permitting firms where chartered accountants, lawyers, company secretaries, actuaries, etc., operate under one structurally integrated firm. This is currently restricted under existing rules. The Economic Times

3.    Permitting Advertising, Marketing & Fund Raising
One of the longstanding constraints on professional service firms has been the ban on hiring marketing or advertising. Policy changes could lift those restrictions. The Economic Times

4.    Easier Tie-ups with Global Firms & Cross-border Collaboration
The review also seeks to streamline tie-ups and partnerships with global consultancies or audit networks. The Economic Times

5.    Stakeholder Consultation Before Rollout
Policymakers have indicated that they will solicit feedback from practitioners and industry bodies before formalizing any structural changes. The Economic Times

Why This Matters

·         Scale & Global Access
Currently, Indian firms remain small in scale relative to global giants. Only ~400 out of 95,000 domestic CA firms have more than 10 partners. The Economic Times
With regulatory flexibility, domestic firms may be better placed to bid for large multinational or government contracts.

·         Breaking the Big Four Dominance
At present, EY, Deloitte, KPMG, and PwC — along with a few others — dominate large audits and advisory mandates in India. The Economic Times
Encouraging big domestic firms would provide alternatives in the ecosystem and reduce overreliance on foreign networks.

·         Holistic Service Delivery
Multidisciplinary firms could deliver integrated services — combining legal, tax, auditing, advisory — under one roof, improving client experience and reducing fragmentation.

·         Regulatory & Market Risks
Without proper checks, easing of rules may raise governance or conflict-of-interest concerns. Firm structures will need robust internal controls and compliance frameworks.

Challenges & Roadblocks

·         Multiple Regulators
Different professions (CA, CS, law, actuary) have their own regulatory bodies. Harmonizing licensing and oversight will require inter-regulatory coordination. The Economic Times

·         Empanelment & Procurement Norms
Many government projects or public sector enterprises have strict involvement criteria, often favoring established large firms. Changing those norms is nontrivial. The Economic Times

·         Resistance to Change
Some firms may resist merging due to culture, legacy systems, or concerns over dilution of brand identity.

·         Quality Assurance & Oversight
As firms scale and diversify, maintaining audit and advisory quality across all domains becomes more complex. New oversight mechanisms may be needed.

What MAJ Associates Is Doing (or Should Do)

·         Stay Engaged in Stakeholder Consultations
We will actively participate in government consultations and industry forums to voice practitioner perspectives.

·         Strengthen Governance & Compliance
As the regulatory environment evolves, stronger internal systems, ethics frameworks, and risk management will be essential.

·         Strategic Alliances
Form alliances or tie-ups with other firms (domestic/regional) to grow service capability even before structural reforms fully come into force.

·         Client Communication & Readiness
Educate clients about these potential shifts, how it may benefit them (economies of scale, better service), and plan transition paths.

 

The government’s intention to fast-track rule reforms for building a domestic “Big Four” is a transformative signal for India’s professional services ecosystem. For firms like us, this isn’t just policy watching — it’s a call to action.

By proactively preparing in governance, alliances, and thought leadership, we aims not just to adapt but to lead in this new era.

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