Finshots Daily Why doesn't India have its own Big 4?
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Jun 13, 2025 India is exploring the creation of its own Big 4 advisory firms to bolster local competition. The current landscape is dominated by international players, prompting a push for self-reliance within the accounting sector. However, chartered accountants face significant challenges, including restrictive regulations and the limitations imposed by sole proprietorships. Additionally, there's a call to rethink ethical guidelines to promote greater transparency and adaptability in the profession, potentially allowing local firms to thrive.
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Small, Local CA Firms
- Most Indian CA firms are small, family-run setups without growth ambitions beyond local dominance.
- They rarely think about expansion or national scale, focusing on survival in their local market.
Regulation Limits CA Firm Growth
- The Chartered Accountants Act of 1949 restricts Indian CA firms from forming large partnerships or advertising.
- Ethics prioritized reputation over marketing, limiting growth and scale of firms.
Global Firms Exploit Consulting Loophole
- Global Big Four firms leverage non-audit services like consulting to advertise and build brand visibility.
- This indirect marketing boosts trust and client retention, which Indian firms cannot replicate easily.