The Hindu Business Line : `CAs ready to tackle global competition'

THE Institute of Chartered Accountants of India (ICAI) on Friday conveyed to the Government that its members are ready for competition, setting to rest all doubts about opening up the domestic market for foreign practitioners under the General Agreement of Trade in Services (GATS).

Mr Sunil Goyal, President, ICAI, said that the opening up of the economy in the WTO regime would offer several opportunities for export of accounting services from India. He asserted that Indian CAs were technically competent to convert the challenges into opportunities.

However, he requested for a level-playing field for them, both in India and abroad, as most of the countries have not given full commitment in the services sector and have imposed non-tariff barriers such as visa and residency requirements.

``We welcome anyone from abroad and do not want any protection from the Government. We are ready to open the accountancy service for foreigners within six months provided our members get reciprocal treatment abroad,'' he said. Mr Goyal further added that the institute was ready for FDI in the accounting service through Mode three.

Earlier, launching the new post qualification course on International Trade Law and WTO introduced by ICAI, here, the Minister of Commerce and Industry, Mr Kamal Nath, pointed at the high stakes India had in services. He said that the Government expected greater commitments in Mode 4, entailing movement of natural persons as service providers, from developed countries besides addressal of non-tariff barriers.

He said he was aware that ICAI has been facing several limitations in the domestic regulatory arena, which limits the competitiveness of Indian chartered accountants. These are required to be removed for giving a level-playing field.

Encouraged by the stand of the chartered accountants, the Minister told newspersons that the legal professionals in the country were also coming round to the idea of opening up their services. ``We are working out the issue with them and have achieved certain milestone,'' he said.

At present, India does not permit FDI in the financial services, legal profession and retail. India has been actively participating in the ongoing services negotiations in the WTO on this issue. These negotiations are done through the route of ``requests'' and ``offers''. While the initial commitment was made in Modes one and two for accounting and book-keeping services (largely business process outsourcing), no commitment is yet offered in the contentious Mode three (FDI in services). Besides, Mode four commitment for movement of natural persons is unbound. India is expected to file improved offers by May end 2005 in different Modes including Mode three.

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