India is taking bold steps towards economic self-reliance by exploring the creation of homegrown consulting firms that can rival the global "Big Four" – Deloitte, PwC, EY, and KPMG. A high-level meeting was convened by the Prime Minister's Office (PMO) to discuss strategies for fostering the growth of large, domestic accountancy firms. The session was chaired by Shaktikanta Das, Principal Secretary to the Prime Minister, and included a presentation by Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister (EAC-PM), who outlined a roadmap for developing globally competitive Indian consulting giants.
The move comes amid growing concerns about India's reliance on foreign advisory firms, particularly in lucrative government contracts. The Indian arms of the Big Four have experienced explosive growth, with combined revenues reaching ₹38,800 crore in FY24 and projected to exceed ₹45,000 crore in FY25. A significant portion of this revenue comes from public sector advisory roles, including PSU disinvestment, financial structuring, and digital governance projects. This rapid expansion, outpacing the growth of their global parent firms, has prompted the government to consider building domestic capabilities in these high-value consulting segments.
The government's vision aligns with the "Atmanirbhar Bharat" (self-reliant India) initiative, which aims to promote greater domestic participation in key sectors of the economy. By fostering the growth of Indian consulting firms, the government hopes to reduce dependence on foreign expertise, build competition, and position consulting as a core component of the national economic strategy. The focus areas for these homegrown firms would include infrastructure planning, tax advisory services, and digital transformation initiatives.
India's consulting sector has been rapidly maturing, driven by factors such as increasing regulatory complexity, the rise of fintech, digital transformation, and infrastructure reforms. While the Big Four currently dominate the market due to their global brand recognition and extensive networks, several mid-sized Indian firms, including Grant Thornton Bharat, BDO India, Nangia Andersen, and Dhruva Advisors, have gained significant traction domestically. The PMO's initiative is expected to encourage these firms to scale up their operations, potentially through consolidation or the incubation of new national champions with international competitiveness.
The government is likely to implement policy interventions, such as incentives and regulatory reforms, to support the growth of domestic consulting firms and build export-ready intellectual capital. This could involve creating a level playing field in government procurement processes, providing financial assistance for capacity building, and promoting collaborations between Indian and international firms. The goal is to create an ecosystem that fosters innovation, attracts talent, and enables Indian firms to compete effectively in the global market.
The establishment of strong domestic consulting firms would not only reduce India's dependence on foreign expertise but also create new opportunities for Indian professionals, boost economic growth, and enhance the country's overall competitiveness.
