Chartered accountants from the UK and Canada might be allowed to practice in India on a reciprocal basis, with the apex body ICAI making the proposal to the Government.
ICAI President Ranjeet Kumar Agarwal, on February 21, said the proposal will be implemented strictly on the reciprocal basis that chartered accountants (CAs) from India will also be allowed to practice in the United Kingdom and Canada. It will be the first time that overseas CAs will be allowed to practice in India.
The proposal is part of India's ongoing negotiations for Free Trade Agreements (FTAs) with the UK and Canada.
Mr. Agarwal also said that a similar arrangement is being looked with Australia.
Once the reciprocal system is implemented, CAs from the UK and Canada will have to be registered with the ICAI, which will be regulating them.
"It will be a reciprocal basis and not on a standalone basis. If they agree, it will be a win-win for both countries... we are very much hopeful... in the UK, there is an ageing population and most of the work has shifted from the UK to India...," Mr. Agarwal, who took over as the President of the Institute of Chartered Accountants of India (ICAI) on February 12, said.
To a query about what could be the impact of foreign CAs practising in India, he said, "It will be in our interest because our members can go there [referring to the UK, Canada and Australia]." He emphasised that there is a huge demand for Indian CAs due to their capabilities and expertise .
As per ICAI estimate, there is likely to be a need for around 30 lakh CAs in the next 20-25 years. The institute has more than 4 lakh members and 8.5 lakh students. Currently, around 42,000 CAs from India are working overseas.
Published - February 21, 2024 05:07 pm IST
