In a significant move, the Institute of Chartered Accountants of India (ICAI) has proposed allowing chartered accountants from the United Kingdom and Canada to practice in India on a reciprocal basis. This proposal, if approved, would mark the first time that overseas chartered accountants could practice in the country.
ICAI President Ranjeet Kumar Agarwal announcing the proposal highlighted that the arrangement would be strictly reciprocal. This means that Indian chartered accountants would also be permitted to practice in the UK and Canada. The proposal is part of India’s ongoing negotiations for Free Trade Agreements (FTAs) with these countries, with similar discussions underway with Australia.
Under the proposed system, foreign chartered accountants wishing to practice in India would need to register with the ICAI, which would regulate their activities. Agarwal emphasized the mutual benefits of the arrangement, noting that it would be advantageous for both countries. He pointed out that the UK, in particular, has seen a shift of work to India due to factors like an ageing population.
“It will be reciprocal basis and not on standalone basis. If they agree, it will be a win-win for both countries… we are very hopeful… in the UK, there is an ageing population and most of the work has shifted from the UK to India…,” Agarwal said.
Further, addressed potential concerns about the impact of foreign chartered accountants practicing in India, Agarwal stated that it would be beneficial for the country. He noted that Indian chartered accountants are highly skilled and in demand globally, suggesting that reciprocal arrangements could create opportunities for Indian professionals abroad.
“It will be in our interest because our members can go there…,” he added.
Meanwhile, it is pertinent to note that currently, around 42,000 chartered accountants from India are working overseas.
