As the country’s chartered accountants and CA firms are getting more accounting jobs from overseas, the Institute of Chartered Accountants of India (ICAI) is working on capacity building measures by facilitating aggregation of the firms to cater to the growing demands from international markets.
In line with Prime Minister Narendra Modi’s vision of having large homegrown accounting firms, ICAI has formed a committee, the Committee of Aggregation of CA Firms, which will come up with operating procedures and guidelines for creating large firms to match their global peers.
Outsourcing hub
“Right now from the worldwide data which we are seeing, most of the overseas countries want to outsource their accounting work to India as we have more skilled chartered accountants and cost is comparatively less. So our young chartered accountants are getting a large amount of accounting work from overseas. They are working for international companies from India. This number is growing and going forward, India will be an ‘accounting hub’ of the world,” Institute of Chartered Accountants of India President Ranjeet Kumar Agarwal told reporters here on Friday.
“As a part of the capacity building measures for catering to the growing overseas accounting demands, we are facilitating aggregation of CA firms. We have also come out with a new concept AI in ICAI. That tool we are also giving to our CA members for efficient use of artificial intelligence for the outside world. So, our institute is facilitating all these technological areas, tools, regulation and capacity building,” Agarwal said.
He said the government also wants Indian CA firms to become big. “Small partnership firms should become big partnership firms,” the ICAI President pointed out, adding aggregation of firms is necessary for capacity building in order to cater to the world.
Currently, there are around one lakh CA firms in India. Around 75,000 are proprietorship firms, while 25,000 are partnerships firms.