The Rise of India’s Mid-Sized Chartered Accountancy Firms: Filling the Domestic Big Four Gap

India’s chartered accountancy (CA) landscape is witnessing a structural shift. Traditionally dominated by the global Big Four- Deloitte, PwC, EY and KPMG, the sector is increasingly seeing mid-sized and smaller domestic firms emerge as key players capable of filling gaps in audit and advisory services. With growing corporate complexity, regulatory pressures and regional diversification, these firms are carving out a space that not only complements but, in certain segments, can rival the traditional stronghold of the Big Four.

Workforce Concentration and Structural Dynamics

As per the latest data from the Institute of Chartered Accountants of India (ICAI) as of October 2025, India has 100,138 registered CA firms employing 183,642 professionals. While single-partner firms dominate numerically comprising 72.6% of all firms they employ only about 40% of the workforce. In contrast, mid-to-large partnership firms with six or more partners, though representing just 2.1% of total firms, employ over 41,000 professionals, more than 20% of India’s professional audit capacity.

This concentration highlights a critical structural insight: a relatively small number of structured, multi-partner firms handle complex audits, regulatory compliance and advisory work. These firms have developed operational rigor, governance frameworks and client-facing capabilities that allow them to scale services effectively. It is this operational sophistication that smaller and mid-sized firms can emulate through strategic growth, enabling them to step into the vacuum created by selective Big Four exit strategies or bandwidth constraints.

Regional Distribution and Opportunity

India’s audit workforce is regionally concentrated, with the West leading in both firm numbers and professional strength, followed by the South and Central regions. The East, meanwhile, remains underrepresented. Certified Practicing Accountants (COPs) mirror this regional skew, indicating where capacity currently resides and where opportunities for expansion lie.

Smaller firms have an inherent advantage in this context. Their flexibility allows them to establish strong local presences in underpenetrated regions. By leveraging deep knowledge of local business ecosystems, regulatory requirements and market dynamics, these firms can offer services that are both cost-efficient and tailored, addressing the unmet demand for high-quality audit and advisory services outside traditional industrial hubs.

Networked Structures

India now hosts 127 professional networks comprising 102 network models, 19 alliance models, and 6 lead firm models. These networks are enabling smaller firms to pool resources, share expertise and extend geographic reach. Through such alliances, mid-sized CAs can replicate some capabilities of the Big Four without the overhead of global operations.

For instance, smaller firms can leverage networked structures to specialize in niche sectors, such as MSME compliance, fintech audits or ESG reporting while maintaining service quality across multiple geographies. These collaborations provide a platform for knowledge transfer, technology adoption and joint service delivery, thereby scaling capabilities in a modular and financially sustainable manner.

Technology as a Force Multiplier

Digital tools and cloud-based audit platforms are levelling the playing field. Mid-sized and small firms are increasingly adopting AI-driven risk assessment tools, automated reconciliations and advanced analytics for internal audits. These technologies reduce dependency on large-scale manpower, allow firms to handle complex compliance tasks efficiently, and offer predictive insights to clients.

Unlike the Big Four, which often rely on globally standardized platforms, smaller firms can adopt modular technology stacks tailored to client needs, offering agility and cost-effectiveness. This flexibility positions them to serve emerging sectors, start-ups and regional businesses that require sophisticated advisory but at a more accessible price point.

Regulatory Changes and Policy Support

The ICAI has introduced initiatives aimed at facilitating firm mergers and partnerships, enabling smaller CAs to scale up rapidly. Digital platforms under development will allow resource sharing, collaborative audits, and joint advisory services. By promoting structural consolidation and professional alliances, these initiatives directly enhance the capacity of mid-sized firms to meet corporate and regulatory demands that were historically dominated by the Big Four.

Additionally, evolving regulatory frameworks in India, ranging from stricter ESG disclosures to specialized taxation regimes create openings for firms with deep technical expertise and localized knowledge. Mid-sized firms, with their nimble structures and sector-specific insights, are well-positioned to address these specialized compliance and advisory requirements.

Client-Centric Approaches and Customized Solutions

One of the key differentiators for smaller and mid-sized firms is client intimacy. Unlike the Big Four, where client allocation can be influenced by global policies and standardized service models, domestic firms often offer personalized engagement, quicker response times and a stronger understanding of client context.

Such agility is critical in India’s heterogeneous business environment. From MSMEs to mid-market corporates, clients increasingly value advisory that combines technical rigor with contextual insights. This client-centric approach allows smaller firms to capture market share in areas that require high-touch service and bespoke audit or consulting solutions.

Challenges and Pathways

While mid-sized firms hold significant potential, scaling to compete with the Big Four involves addressing structural and operational challenges. Talent acquisition and retention, continuous upskilling, robust quality control, and investment in technology infrastructure are key enablers. Additionally, regulatory complexity, cross-border compliance and sector-specific advisory demands necessitate continuous capability building.

The pathway forward involves strategic partnerships, adoption of professional networks and targeted technological investments. By consolidating resources and leveraging collaborative models, smaller and mid-sized firms can bridge capacity gaps, reduce client dependency on the Big Four and emerge as credible alternatives in India’s evolving audit ecosystem.

Redefining the Domestic Big Four

The concept of a “domestic Big Four” in India is not about replicating global giants but about achieving operational excellence, sectoral specialization and regional dominance through strategic growth. Mid-sized firms, networked alliances and technology adoption collectively enable the rise of a domestic cohort capable of managing large-scale audits, regulatory compliance and advisory services.

In sectors such as financial services, infrastructure and technology, where audits require sector-specific expertise and regulatory depth, these firms are increasingly stepping into roles traditionally reserved for global players. By combining scale with agility, domestic firms can offer competitive pricing, faster turnaround and personalized insights, creating a compelling value proposition for Indian businesses.

India’s chartered accountancy sector is at a pivotal juncture. The concentration of workforce in mid-to-large firms, coupled with technological adoption, regulatory support and networked collaborations, is enabling smaller and mid-sized CA firms to fill gaps left by the Big Four. With agility, sector specialization and localized expertise, these firms are well-positioned to challenge the traditional dominance of global giants and redefine professional services in India.

The evolution of mid-sized and small CA firms represents a structural shift that promises to increase competition, improve service quality and enhance accessibility of high-quality audit and advisory services across the country. As these firms continue to scale, innovate, and leverage networks, India could witness the emergence of a robust domestic Big Four, driven by local expertise, client intimacy and technological proficiency.