Based on a reciprocal basis, Chartered accountants from the UK and Canada might be allowed to practice in India. The said proposal was mooted by ICAI President Ranjeet Kumar Agarwal on Wednesday. With this, it will be the first time that an overseas chartered accountant will be allowed to practice in India.

This proposal is focused on India’s ongoing negotiations for Free Trade Agreements (FTAs) with the UK and Canada. Similar arrangement is also being looked at to partner with Australia as per Agarwal.

Chartered accountants from the foreign countries will have to be registered with the ICAI, which will be regulating them once the reciprocal system is implemented.

”It will be on 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 aging population and most of the work has shifted from the UK to India,” stated Agarwal. He took over as the President of the Institute of Chartered Accountants of India (ICAI) on February 12.

India is a developing country and they are developed countries, wherein, it would be a great stance to see the impact of chartered accountants from foreign countries practicing in India, referring to the UK, Canada and Australia. ”It will be in our interest because our members can go there,” he added.

Due to the Indian chartered accountants’ capabilities and expertise are in huge demand outside, he further emphasized. Currently, around 42,000 chartered accountants from India are working overseas. Furthermore, there is likely to be a need for around 30 lakh chartered accountants in the next 20-25 years, as per ICAI estimate. Today, the institute has come a long way with more than 4 lakh members and 8.5 lakh students.