The India-UK free trade agreement (FTA) is anticipated to significantly enhance the flow of high-value professional services into India.  

According to the Economic Times, Institute of Chartered Accountants of India (ICAI) president Charanjot Singh Nanda said that this development will benefit thousands of chartered accountancy firms and professionals.   

“By actively engaging with the commerce and industry ministry, the ICAI ensured liberal market access and the inclusion of a reciprocity clause protecting the use of the ‘chartered accountant’ title,” Nanda said. 

Nanda highlighted India’s advantages, including cost efficiency, a skilled workforce, and a strong reputation, as key benefits from the FTA. 

India has committed to opening 108 sub-sectors of services, such as accounting and auxiliary financial services, to UK firms under the trade agreement signed last week.  

In exchange, the UK will provide Indian companies access to 137 sub-sectors, covering nearly all of India’s current services exports. 

Nanda stated that the ICAI also advocated for mutual recognition of qualifications, allowing Indian chartered accountants to register and practice in the UK on a reciprocity basis.  

The ICAI, through its Council, offered technical inputs on licensing, qualification recognition, and digitally delivered services, leading to the inclusion of cross-border supply under Mode 1 services. 

“This opens significant outsourcing opportunities in areas such as bookkeeping, tax, and consulting,” he added.  

The ICAI also facilitated provisions for commercial presence under Mode 3 services, enabling Indian firms to register and operate in the UK without discriminatory restrictions while maintaining the principle of reciprocity. 

In other news from the Indian accountancy sector, earlier in July 2025, the ICAI invited public comments on proposed amendments to Regulation 204 of the Chartered Accountants Regulations, 1988.  

The amendment introduces “Forensic Investigation” as a recognised field, expanding the scope for chartered accountants. 

Published in the Gazette of India on 26 June 2025, the draft regulations are open for feedback until 31 July 2025.  

The ICAI Council will review all comments before finalising the Chartered Accountants (First Amendment) Regulations, 2025, which will take effect upon publication in the Official Gazette.