ICAI to Finance Homegrown MDPs for Global Expansion

Candolim (Goa), Oct 12 (PTI) To help set up big homegrown multi-disciplinary partnership firms, the chartered accountants' apex body ICAI is preparing a report that focuses on bringing finances to firms for expanding their capacities on a global scale.

As part of efforts to become a developed economy by 2047, a focus area is to have global-scale Indian Multi-Disciplinary Partnerships (MDPs) that bring together auditing and consulting entities.

ICAI President Charanjot Singh Nanda on Sunday said discussions are happening at the government level and issues are being looked into.

The global consulting and auditing industry is valued at around USD 240 billion and is dominated by foreign firms.

The government has been pushing for building indigenous professional service giants, and free trade agreements with various countries also present expansion opportunities for Indian entities.

With respect to setting up large Indian MDPs, Nanda highlighted the importance of five elements, including regulatory benefits, technology, finance and capacity building.

At a gathering here, he also stressed the need to have a change in mindset when it comes to developing MDPs.

A working group at the Institute of Chartered Accountants of India (ICAI) is preparing a report on tapping finances for the homegrown MDPs.

The report will look at various aspects related to MDPs, such as getting funding for setting up offices and infrastructure, Nanda said.

The Ministry of Corporate Affairs has constituted an Inter-ministerial Group (IMG) on developing the domestic ecosystem of consulting and auditing firms.

The MDP firms will render multiple services like maintenance of cost records, accounting, auditing, assurance, secretarial, legal, valuation, and management, among others, under one umbrella.

"Despite India's world-class talent pool, domestic firms remain marginal players, particularly in high-value audits and consulting, partly due to structural and regulatory barriers," the ministry said in a communication in September while seeking public comments on establishing Indian MDPs.