India's Big Four bet

India stands on the cusp of a transformative opportunity.

- DINESH KANABAR

Recent reports indicate that the Prime Minister's Office (PMO) is actively strategizing to nurture home-grown accounting and consulting firms capable of rivaling global giants. This ambition, deeply aligned with Atmanirbhar Bharat, recognizes the untapped potential of Indian professional services to not only compete but lead on the world stage. The aspiration articulated by the Prime Minister and finance minister to birth Indian firms of global stature is both timely and essential.

To grasp the scale of the vision, we must first understand the rise of the "Big Four" — Deloitte, PwC, EY, and KPMG. Their global dominance was no accident. In the post-World War II era, as American and European multinationals expanded across borders, their auditors followed, establishing international offices to meet client demands. What began as audit-focused firms evolved into multi-disciplinary powerhouses. Trust in their audit opinions became a springboard for diversified services — tax, technology, strategy, human capital, and digital transformation. In India today, audits account for less than 20% of their revenue, with the bulk flowing from advisory, government projects, and technology consulting. These firms didn't just ensure compliance; they became strategic architects of business growth.

A missed opportunity, a new horizon India faced a critical juncture two decades ago. As Indian information technology (IT) and pharmaceutical companies like Infosys and Dr. Reddy's went global, they sought international credibility to access capital markets. Naturally, they turned to the Big Four for audits and certifications, often sidelining Indian firms even for domestic work. This created a paradox: Indian businesses powered global markets, yet Indian professional services remained local. The question now is not whether Indian firms should go global, but how swiftly they can seize this renewed opportunity.