Possibility of UK and Canadian Chartered Accountants Practicing in India Discussed by ICAI President

The President of the Institute of Chartered Accountants of India (ICAI) has brought forth a proposal suggesting that chartered accountants hailing from the United Kingdom and Canada could potentially practice in India. This proposition, set forth on February 21, aims to establish a reciprocal arrangement between these nations, wherein Indian chartered accountants would also gain the opportunity to practice in the UK and Canada. If materialized, this would mark a significant development, as it would be the first instance of overseas CAs being permitted to practice within India.

The proposal forms part of India’s ongoing negotiations for Free Trade Agreements (FTAs) with the UK and Canada, indicating a broader economic context to this initiative. Furthermore, discussions are underway to explore a similar arrangement with Australia, adding to the scope of potential collaborations in this domain.

Under the proposed reciprocal system, CAs from the UK and Canada seeking to practice in India would need to register with the ICAI, which would then regulate their activities. The President stressed that this arrangement would be mutually beneficial, offering advantages to both India and the partner countries. Particularly, he highlighted the shifting dynamics of work from the UK to India and the demographic challenges faced by the UK, hinting at the potential for increased opportunities for Indian CAs abroad.

Responding to inquiries regarding the potential impact of foreign CAs practicing in India, the President underscored the benefits, noting that Indian CAs possess significant capabilities and expertise that are in demand globally. With projections suggesting a substantial demand for CAs in India over the next few decades, estimated to be around 30 lakh in the next 20-25 years, such reciprocal arrangements could serve to address this demand while also facilitating greater professional exchanges between nations.

The ICAI, which boasts more than 4 lakh members and 8.5 lakh students, currently sees around 42,000 Indian CAs working overseas. This proposed initiative could further expand opportunities for Indian professionals on the global stage, fostering a more interconnected and dynamic landscape within the field of chartered accountancy.