India to Discuss Creation of Homegrown ‘Big Four’ Accounting Firms on September 23

A Landmark Meeting Set to Redefine India’s Audit and Consulting Sector

On September 23, a high-level meeting convened by the Prime Minister’s Office will focus on a proposal with sweeping implications: the creation of India’s own “Big Four” accounting firms. The initiative is aimed at reducing the country’s reliance on global professional services giants—PwC, KPMG, Deloitte, and EY—and building a set of domestic powerhouses capable of competing with them on both national and global fronts.

If realized, the move could reshape not only India’s financial services ecosystem but also alter the balance of power in the worldwide audit and consultancy industry.

India’s Reliance on Global Accounting Majors

For decades, global firms have dominated India’s auditing, taxation, and consultancy landscape. Deloitte, KPMG, PwC, and EY—collectively known as the Big Four—handle a vast majority of auditing work for India’s listed companies, multinational corporations operating within its borders, and high-value public sector projects.

While they bring international standards and global reach, their dominance has also led to concerns about overreliance. High-profile corporate collapses linked to audit failures, combined with rising regulatory scrutiny on issues like independence and conflict of interest, have encouraged policymakers to rethink the structure of the industry.

The new proposal reportedly advocates easing regulatory barriers for Indian firms, strengthening capacity-building measures, and incentivizing mergers to create larger, more competitive entities.

Historical Context of India’s Accounting Landscape

India’s accounting industry is rooted in the legacy of the Institute of Chartered Accountants of India (ICAI), established in 1949. For much of the early post-independence era, domestic firms and partnerships of Indian chartered accountants dominated the field. However, the liberalization wave of the 1990s opened the doors wider to multinational consulting and auditing companies.

Global majors rapidly expanded in India, often working through local affiliates or network arrangements. These partnerships gave Indian firms access to international expertise but gradually consolidated the Big Four’s hold over the most lucrative projects.

Historically, smaller Indian accounting firms were constrained by strict ownership rules, limits on firm size, and fragmented market structures. These hurdles prevented consolidation on the scale necessary to challenge their international competitors.

By considering regulatory easing, the government now appears intent on reversing decades of dependence and reviving a domestic sector that has long been overshadowed by its global counterparts.

Why Now? Timing of the Government’s Push

The timing of the September 23 meeting is significant. India has emerged as one of the fastest-growing major economies in the world, with GDP growth often outstripping global averages. Expanding industries such as digital services, energy, pharmaceuticals, and manufacturing require a robust auditing and consulting ecosystem aligned with local priorities.

Simultaneously, recent scandals have highlighted vulnerabilities. In 2018, one of India’s most notorious corporate failures revealed weaknesses in auditing oversight. Similar cases have underscored the risks of entrusting audits of systemically important firms to global entities that may lack deep domestic accountability.

The government’s push is also aligned with its broader agenda of self-reliance, encouraging homegrown champions across sectors from defense manufacturing to digital infrastructure. Developing indigenous accounting giants could both support India’s companies abroad and safeguard national financial systems from undue reliance on foreign-controlled firms.

Economic Impact and Industry Opportunities

If executed, the establishment of Indian equivalents of the Big Four could unlock extensive economic opportunities.

• Capacity Expansion: Strengthened local firms would be able to handle large-scale audits of banks, infrastructure projects, and conglomerates without outsourcing advisory functions to international networks.
• Employment Growth: Millions of young chartered accountants and management graduates enter the job market annually. Larger homegrown firms could absorb this talent and provide globally competitive career paths.
• Revenue Retention: Fees currently flowing to multinational firms could remain within the domestic economy, creating stronger reinvestment cycles in the Indian professional services ecosystem.
• Global Aspirations: Once consolidated, Indian firms could also compete abroad, particularly in emerging markets across Asia and Africa where demand for affordable, high-quality auditing and consulting services is growing.

Industry experts suggest the move will not be immediate, but even a planned roadmap has the potential to shift India’s ranking within the global financial services ecosystem.

Comparisons with Regional Approaches

India is not alone in reassessing its reliance on international auditing majors. Several emerging economies have explored similar initiatives:

• China: Over the past two decades, China has invested heavily in building local accounting behemoths. Firms such as ShineWing and Ruihua have expanded rapidly, partly fueled by state support, and are now breaking into international rankings.
• Japan: Though global audit companies operate in Japan, local giants such as BDO Japan and limited networks of Japanese auditors hold significant market share, ensuring a balance between foreign and domestic expertise.
• Middle East: Countries like Saudi Arabia and the UAE are encouraging partnerships that strengthen local auditing capacity as part of their diversification strategies.

By drawing on these examples, India could carve a path that allows for significant growth of homegrown firms without compromising on international quality and compliance standards.

Regulatory Reforms Under Discussion

For Indian firms to scale into equivalents of the Big Four, certain critical regulatory reforms are expected to be discussed on September 23:

• Partnership Size Restrictions: Current rules limit the number of partners in firms, preventing them from growing to global scale. Relaxing these caps is seen as essential.
• Ownership and Capital Rules: Allowing more flexible ownership structures could attract capital into domestic firms.
• Audit Rotation Policies: Adjustments to how long firms can hold contracts may help diversify the sector while promoting more opportunities for local players.
• Infrastructure Support: Domestic firms might require technology, data systems, and training support to meet the demands of auditing in high-tech sectors.

The discussions will also weigh the balance between nurturing domestic champions and maintaining global credibility.

Reaction from Industry and Experts

The announcement of the upcoming meeting has already sparked strong responses within the accounting and corporate communities. Many Indian chartered accountants see the proposal as an overdue recognition of domestic capabilities. There is broad optimism about the opportunity to create firms that can reflect India’s economic priorities and values more directly.

However, some caution that transition must be gradual and carefully managed. Audit markets are sensitive, and any perception of compromised independence or quality could have ripple effects on investor confidence. Others note that the Big Four themselves are unlikely to vanish from India; instead, the scenario could evolve into greater competition, offering companies more choice and reducing concentration risks.

Global Implications of an Indian Big Four

The creation of Indian audit giants could reverberate well beyond national borders. Emerging market economies in Africa, Southeast Asia, and Latin America often face similar challenges of overdependence on global audit networks. Indian firms with competitive pricing, technological expertise, and multilingual capabilities could become attractive alternatives in these regions.

For the global Big Four, India’s move could signal intensifying regulatory pressures worldwide. Even as they continue to dominate internationally, the emergence of local competitors could spur adjustments in business models and partnership structures.

The Road Ahead

The September 23 meeting is expected to outline a preliminary vision rather than establish immediate structural reforms. Industry insiders suggest the government may task committees with drafting detailed frameworks, including merger blueprints, extension of tax incentives, and methods for aligning domestic firms with global best practices.

What is clear is that India’s strategy is driven by more than just accounting reform. It forms part of a larger push to enhance economic sovereignty, nurture high-value service exports, and reduce vulnerabilities in critical financial infrastructure.

Conclusion

As India prepares to deliberate the creation of its own Big Four, the country stands at a point of potential transformation. From its post-independence accounting roots to the modern dominance of international giants, the story of Indian auditing has mirrored the nation’s economic journey.

If the proposed reforms are executed effectively, Indian audit and consulting firms could evolve into globally respected players, reshaping not just domestic markets but the very architecture of international auditing. The September 23 meeting may well be remembered as the first step toward rebalancing the world’s financial accountability industry with a distinctly Indian imprint.