In today’s Finshots, we tell you why India is thinking of building its own Big 4 equivalent of advisory firms and why it hasn’t had one until now.

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The Story

In the world of accounting and advisory, there’s one term that everyone knows — the Big 4. It’s practically a household name in corporate circles. Deloitte, Ernst & Young (EY), KPMG and PricewaterhouseCoopers (PwC). These firms are giants. They audit, advise and consult for some of the biggest companies on the planet. And they don’t just dominate globally. Their presence in India is just as commanding.

To give you an idea, the Indian affiliates of these firms, along with Grant Thornton and BDO, handled nearly 70% of the assignments for Nifty-500 companies as of March 2025. That’s a massive chunk of the country’s corporate backbone.

But now, the government wants to shake things up.

Last week, the Prime Minister’s Office, led by Principal Secretary to the PM and former RBI governor Shaktikanta Das, sat down to explore ways to build an ecosystem where Indian CA (Chartered Accountancy) firms can grow and scale. Their goal? To end this long-standing dependence on foreign advisory firms and create homegrown heavyweights.

Which brings up the obvious question — why hasn’t India produced its own version of the Big 4 yet?

Well, think about it. If you’ve ever walked into a typical CA’s office, it’s likely a small setup. Maybe a sole proprietor or a couple of partners. More often than not, it’s a family-run affair. A CA starts a firm, maybe passes it on to the kids if they choose the same career path. If not, the firm fades away with the founder. Succession planning is not exactly a priority. And the aim, usually, is to be the best in the neighbourhood, not the best in the country. Most firms aren’t thinking about expansion or national scale. They’re just trying to survive in their local bubble, often competing with one another instead of collaborating.

And here’s the thing. Some of this mindset could be traced back to the structure of the profession itself, which in turn goes back to the Chartered Accountants Act of 1949.

This Act, while essential in regulating the profession, ended up placing certain shackles on growth. For years, CA firms in India weren’t allowed to form large partnerships or join hands with non-CA entities. They couldn’t use international branding and advertising was a no-go. Even now, firms can’t put up fancy sign boards, build flashy websites or use bold, catchy fonts. They must follow the ICAI (Institute of Chartered Accountants of India) guidelines. The only time limited advertising is allowed is when these firms are hiring, acquiring or liquidating assets, or shutting shop.

And all this stems from one fundamental belief — that a professional should earn business through reputation, not marketing. That soliciting work compromises ethics. Which sounds noble. But in today’s fast-paced world, it could also be a bit outdated.

That said, it’s not like global firms had a free pass either. They’re also restricted from advertising their audit services.

But they had one big advantage: their non-audit services. Things like consulting or management advisory can be advertised. And that loophole made all the difference. These firms could build their brand visibility through consulting and indirectly funnel clients to their audit arms. That’s why you’ll see Big 4 logos at conferences, in magazines or on event banners. That visibility creates trust and keeps clients coming back.

On the other hand, out of nearly 1,00,000 practising CA firms in India, a staggering 75% are sole proprietorships. And only about 400 Indian firms have more than 10 partners. Scale just hasn’t happened — not because of lack of talent, but because of systemic roadblocks.

And then there’s the multinational angle. If an MNC is audited by one of the Big 4 globally, they’ll want the same firm to audit their Indian arm. That means Indian CA firms barely get a foot in the door.

Now, it’s not like nothing’s being done to fix this.

Back in 2017, the Prime Minister himself urged the ICAI to take this challenge seriously. And in 2021, the institute rolled out networking guidelines. It was a framework to help CA firms collaborate, share resources and build collective strength.

And the idea was simple: allow smaller firms to come together under a shared brand while still retaining their individual identities.

But enthusiasm was lukewarm. Fewer than 200 CA firms took it up. Maybe they were worried about losing control or didn’t believe collaboration would boost earnings. Either way, the momentum never really built.

So now, the government’s trying again. The ICAI has recently released revised guidelines to encourage cross-border collaborations and help Indian firms improve global competitiveness, still within the ethical framework of the profession, of course.

But here’s the thing again. Even this may not be enough as there are still too many unresolved issues.

For one, over 100 Indian audit firms already have international affiliations. But they can’t use those affiliations for branding or to solicit work, thanks to the CA Act. So the partnerships remain underutilised. There’s also a major gap when it comes to technology. Many domestic firms haven’t invested in tools and systems that streamline documentation and audit processes. For many, investing in technology feels like a big change that’s hard to deal with. So they stick to their old audit practices. And doing that puts them further behind their global counterparts.

Then there’s the fine print in the ICAI’s revised guidelines. According to a Financial Express article, a senior partner at a Big 5 firm raised a valid concern — the new rules extend the ICAI’s code of ethics to all “network components”, even non-CA entities. That means if a CA firm partners with a tech firm for audit tools, the tech firm has to follow CA ethics too. That’s not just impractical, it’s a dealbreaker.

So yeah, maybe the real issue here isn’t just rules or frameworks. It’s about acknowledging ground realities. You can’t expect radical change just by drafting more guidelines or hoping firms suddenly start dreaming bigger.

Maybe it’s time to rethink some of the old restrictions. Take advertising, for example. Allowing ethical advertising could be a game-changer, not just for visibility, but for transparency. Clients could make more informed choices if they had clear information about a firm’s services, expertise and fees.

After all, as a Business Standard piece once pointed out, “No one has made out a case yet showing that the professional or ethical standards of accountants abroad have declined because of the freedom to advertise and solicit work.”

So perhaps the answer lies not in completely rewriting the rulebook, but in giving Indian firms the freedom to play the modern game, without compromising their ethics.

And maybe that’s what it’ll take for India to build its own Big 4.

Until then…

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