India's quest for Atmanirbharta in consulting domain

Narendra Modi government's vision to create India's own league of globally competitive consulting companies is commendable

- PATHIKRIT PAYNE

Recent media reports indicate that extensive deliberations are being held by top policymakers in Modi Government to chart a roadmap for India to have its own league of globally competitive consulting companies.

The consulting footprint in India, especially that for the Government projects, be it Central or that of the States, is marked by sheer dominance of Indian subsidiaries of foreign consulting companies.

From drafting of Detailed Project Reports (DPR) to undertaking feasibility studies, developing roadmap for disinvestments, to advisories in the realm of policy initiatives or financial matters, an overwhelming dominance of the foreign consulting companies is a norm than an exception.

Those advisories do not come cheap.

The Foreign Consulting and Advisory Companies mint revenues running into thousands of crores.

A recent report published in The Economic Times stated that the Indian subsidiaries of Big Four consulting and accounting firms, namely Deloitte, PwC, EY and KPMG performed better than their 'global counterparts' in terms of 'revenue growth' in FY24, and is projected to earn a staggering Rs 45,000 crore in combined revenue for FY25.

In FY24, their revenue was estimated to be between Rs 38,500-38,800 crore.

A lion's share of this revenue comes from consulting work.

Striving for Self-Sufficiency: Advisories from Foreign Consulting Companies may have contributed their bit, but perhaps time has come for India to look beyond them.

With a $4 trillion nominal GDP, and aspiring to be a $10 trillion behemoth by 2035, India has traversed a treacherous and challenging road in the last one decade, to metamorphose itself from being part of the infamous club of 'Fragile Five' in 2013, to be among the 'Major Four' economies of the world by 2025.