Indian CA Firms Urged to Pursue Real Mergers for Global Competitiveness, ETCFO

Veteran chartered accountants are calling on Indian accounting and consulting services firms to move beyond symbolic partnerships and pursue genuine mergers to build globally competitive institutions. Their comments come amid a wave of consolidation interest across the sector, as more firms evaluate strategic combinations and the government pushes for homegrown firms with global capabilities.

Veteran professionals Amarjit Chopra, Aniket Talati, Ashok Haldia, and Ajay Sethi told ETCFO that if Indian firms are serious about building scale, winning international mandates, and ensuring long-term sustainability, they must embrace real consolidation, combining resources, leadership, and systems under unified structures.

Chopra: Mergers, not alliances, must define Indian firm consolidation

Amarjit Chopra, former president of the Institute of Chartered Accountants of India (ICAI), said the recent spate of alliances among Indian accounting and consulting firms should not be mistaken for structural mergers.

I would actually be more interested that some of the mid-size firms merge and then undertake both audit and consultancy work together, rather than merely having an alliance for consulting workAmarjit Chopra, former president of the Institute of Chartered Accountants of India (ICAI)

He cited the example of past consolidations involving international firms, which grew through real mergers not symbolic partnerships. He said alliances formed solely for consulting were only a partial step.“Ultimately, merging of the firms will be far more important. It’s a good beginning, but structural mergers must be the long-term goal.

Chopra emphasized the need for multi-disciplinary capabilities under one unified firm, citing technology and management consulting as essential components in global advisory competitiveness.

As ICAI moves towards lifting its decades-old ban on advertising by CAs—a development confirmed to ETCFO—a bigger question is surfacing: Does India’s accounting profession need a complete overhaul to build globally competitive homegrown firms? While experts call the branding push a “step in the right direction,” they warn that without deeper reforms—such as revamping 75-year-old regulations, enabling firm mergers, and allowing greater operational freedom—India’s ambition to create its own accounting giants may remain elusive.

Talati: Branding needed for advisory scale, not audit Aniket Talati said that as India positions itself as a global hub for finance and accounting services, chartered accountancy firms must be allowed to showcase advisory achievements and build brand visibility.

There must be some relaxation of how advisory arms can source work, execute it, and showcase their successful transactions. Branding, not advertising, will be key for building global firms.

Talati emphasized that branding should apply to consulting, analytics, M&A, ESG, and other non-audit services, not statutory audit functions.

You cannot build a global firm based solely on audit. Advisory, consulting, bookkeeping, FP&A, these are areas where Indian firms must scaleAniket Talati, former president of the Institute of Chartered Accountants of India (ICAI)

He welcomed the Institute’s ongoing committee work on revising the code of ethics and advertisement guidelines, calling it timely given the government’s push to create Indian-origin global accounting and consulting firms.

Haldia: Reform legacy rules to enable Indian growth

Former ICAI secretary Ashok Haldia stressed that Indian firms remain disadvantaged by outdated regulatory and procurement structures.

Multinational-affiliated firms have leveraged global branding and procurement access in ways Indian firms cannot under current restrictionsAshok Haldia, Former ICAI secretary

He pointed to legacy frameworks, including qualification norms for government and large private sector mandates, that effectively limit opportunities for Indian-origin firms.

“Rewriting these rules is essential if we want a level playing field for Indian firms to scale and compete globally.”

Sethi: Mindset shift and internal governance reforms key

Ajay Sethi, Managing Partner at Baker Tilly ASA India, said real mergers, not alliances are essential for India to create institutions of global scale.

“We must move away from superficial groupings and build single, unified firms that share profits, governance, and purpose.”

He said many Indian mid-sized firms fail to grow because they remain fragmented and territorial.

Growth requires trust, delegation, and unified management, not just working arrangements. Global competitiveness demands internal cohesionAjay Sethi, Managing Partner at Baker Tilly ASA India

Sethi added that real consolidation would allow Indian firms to better serve large clients across sectors, similar to mid-sized firms in mature economies.

India’s audit ecosystem remains tilted in favour of the Big Four, warns Baker Tilly ASA’s Ajay Sethi, citing exclusionary tenders, restrictive private equity clauses, ambiguous joint audit rules, and weak enforcement of the ICAI guidelines. Sethi said that instead of chasing a “desi Big Four,” India should focus on building a strong top 20 audit ecosystem.

• Published On Aug 5, 2025 at 04:21 PM IST

Join the community of 2M+ industry professionals.

Subscribe to Newsletter to get latest insights & analysis in your inbox.

All about ETCFO industry right on your smartphone!

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}