India Accounting Services Market Size, Share, Trends and Forecast by Type of Service, and Region, 2026-2034

India Accounting Services Market Summary:

The India accounting services market size was valued at USD 28.38 Billion in 2025 and is projected to reach USD 65.63 Billion by 2034, growing at a compound annual growth rate of 9.76% from 2026-2034.

The India accounting services market is witnessing significant expansion driven by evolving regulatory frameworks, rising demand for professional bookkeeping and tax compliance solutions, and the rapid digital transformation of financial operations. The surge in startup registrations and small and medium enterprise (SME) growth is compelling businesses to seek professional accounting support for efficient financial management. Furthermore, the growing adoption of cloud-based accounting platforms, artificial intelligence-driven automation, and the expanding scope of outsourced accounting solutions are strengthening the India accounting services market share.

Key Takeaways and Insights:

• By Type of Service: Tax preparation services dominate the market with a share of 33% in 2025, supported by increasingly stringent compliance obligations under GST reforms and the rising complexity of both direct and indirect tax regulations across various business sectors.
   
• By Region: North India leads the market with a share of 30% in 2025, supported by the concentration of corporate headquarters, government institutions, and financial services hubs in Delhi-NCR and surrounding commercial centers.
   
• Key Players: The India accounting services market exhibits a moderately fragmented competitive structure, with established multinational professional services networks competing alongside a growing base of domestic firms, mid-tier regional practices, and specialized technology-driven service providers across compliance, advisory, and outsourcing segments.

The India accounting services market is undergoing a period of transformative growth, propelled by the country’s evolving fiscal landscape and broadening corporate governance requirements. The implementation of the Goods and Services Tax (GST) has fundamentally altered the compliance ecosystem, creating sustained demand for professional tax preparation and advisory services. The Institute of Chartered Accountants of India (ICAI) launched CA GPT in July 2024, deploying nineteen AI-powered modules that have benefited over 70,000 members and 50,000 students, reflecting the profession’s accelerating technology integration. The simultaneous growth of India’s startup ecosystem, with thousands of new business registrations each year, continues to generate demand for scalable bookkeeping, payroll management, and financial reporting solutions. Additionally, the Indian government’s Union Budget 2025–26 announced policy initiatives aimed at nurturing domestic accounting firms to compete at a global scale, signaling sustained institutional support for the sector’s long-term development.

India Accounting Services Market Trends:

Integration of Artificial Intelligence and Automation in Financial Operations

The adoption of artificial intelligence and machine learning technologies is reshaping financial operations across India’s accounting services landscape. Firms are increasingly deploying AI-powered tools for automated reconciliation, predictive analytics, fraud detection, and real-time financial reporting. These technologies are reducing manual intervention while enhancing accuracy and strategic decision-making capabilities. Between July 2024 and February 2025, the ICAI trained over 16,000 chartered accountants in AI applications, and the committee on artificial intelligence conducted a large number of training sessions within a short period, with strong participation from members enrolled in its certificate program on AI.

Expansion of Cloud-Based Accounting Platforms Among SMEs

Cloud-based accounting solutions are experiencing rapid adoption among India’s small and medium enterprises, driven by their affordability, scalability, and real-time access capabilities. These platforms enable businesses to manage invoicing, compliance, payroll, and financial reporting from anywhere, facilitating the shift toward remote and digital-first operational models. The Indian government’s mandatory e-invoicing requirements, which from April 2025 apply to businesses with an annual aggregate turnover of INR 10 crore or more, are accelerating the transition to integrated digital accounting systems and driving demand for cloud-native compliance solutions.

Rising Demand for Specialized Advisory and ESG Reporting Services

Accounting firms in India are expanding their service portfolios beyond traditional compliance functions to include specialized advisory services such as forensic accounting, transfer pricing, ESG reporting, and crypto-tax advisory. As corporate governance standards tighten and businesses pursue sustainable practices, the need for expert guidance on non-financial reporting is growing. For instance, in March 2025, Grant Thornton established a forensic partnership with IndusInd Bank for a USD 175 million derivatives review, illustrating the increasing sophistication and value of advisory engagements within the Indian accounting services sector.

Market Outlook 2026-2034:

The India accounting services market is poised for sustained growth over the forecast period, underpinned by expanding regulatory complexity, rapid digital infrastructure development, and the country’s emergence as a global hub for finance and accounting outsourcing. The government’s continued emphasis on tax reform, corporate transparency, and digital compliance is expected to generate consistent demand for professional accounting services across enterprise sizes. India’s growing Global Capability Centre (GCC) ecosystem, with twenty-four centers exceeding USD 1 billion in revenue for the first time in FY 2024, further strengthens the market outlook. The market generated a revenue of USD 28.38 Billion in 2025 and is projected to reach a revenue of USD 65.63 Billion by 2034, growing at a compound annual growth rate of 9.76% from 2026-2034.

India Accounting Services Market Report Segmentation: 

Type of Service Insights:

• Tax Preparation Services
• Bookkeeping Services
• Payroll Services
• Others

Tax preparation services dominates the market with a share of 33% of the total India accounting services market in 2025.

Tax preparation services represent the largest segment within India’s accounting services market, driven by the country’s complex and continually evolving taxation framework. The implementation of the Goods and Services Tax and subsequent reforms, including mandatory e-invoicing extensions, Input Service Distributor registration requirements, and the introduction of the Invoice Management System, have significantly increased the compliance burden on businesses. These regulatory developments have created sustained demand for professional tax preparation expertise, particularly among SMEs and startups that lack in-house tax capabilities.

The segment’s dominance is further reinforced by India’s expanding taxpayer base, with active GST registrations surpassing 1.51 crore as of April 2025, and record gross GST collections reaching INR 22.08 lakh crore in FY 2024–25. Recent changes to the direct tax framework are streamlining accounting and compliance requirements by moving toward a more unified set of rules. The proposed removal of parallel accounting standards is expected to create a transition phase for businesses, increasing the need for specialized advisory support. Accounting professionals are likely to see rising demand for services related to realignment, interpretation, and implementation as companies adjust their tax positions and compliance processes to the updated framework.

Regional Insights:

• North India
• South India
• East India
• West India

North India leads the market with a share of 30% of the total India accounting services market in 2025.

North India commands the largest share of the accounting services market, anchored by the presence of the national capital region, which serves as a hub for government agencies, multinational corporations, and financial institutions. The Delhi-NCR corridor, along with commercial centers across Uttar Pradesh, Haryana, and Punjab, drives substantial demand for tax compliance, audit, and advisory services. The region benefits from a dense concentration of corporate headquarters and a thriving startup ecosystem that requires professional financial management support.

The region’s market leadership is further supported by the proliferation of Global Capability Centres, with Tier-2 cities such as Noida and Gurugram increasingly attracting GCC mandates due to cost advantages and improving infrastructure. The ICAI’s network of regional branches and training centers across North India ensures a steady supply of qualified accounting professionals, while government digitization initiatives and the expansion of e-invoicing requirements continue to fuel demand for professional accounting services throughout the region.

Market Dynamics:

Growth Drivers:

Why is the India Accounting Services Market Growing?

Expanding Regulatory Complexity and Tax Reform Initiatives

India’s regulatory landscape is becoming increasingly complex, driving sustained demand for professional accounting and tax compliance services. Businesses across sectors face growing administrative challenges due to evolving indirect and direct tax frameworks, as well as the introduction of new digital compliance mechanisms. These regulatory changes require firms to adapt their reporting, documentation, and accounting processes to remain compliant. Simultaneously, reforms aimed at simplifying tax legislation and aligning accounting standards are creating transitional compliance requirements. This environment is prompting companies to seek expert guidance from accounting professionals to navigate the evolving rules, ensure accurate reporting, and maintain regulatory compliance while optimizing operational and financial efficiency.

Rapid Growth of Startups and SMEs Requiring Professional Financial Management

India’s entrepreneurial ecosystem is expanding at an unprecedented pace, with the country recognized as one of the world’s largest startup hubs. The rapid growth of new businesses across technology, e-commerce, fintech, and manufacturing has significantly increased demand for professional accounting services, including bookkeeping, payroll, tax planning, and financial reporting. Small and medium enterprises are increasingly turning to external accounting providers to handle compliance requirements, improve financial discipline, and support informed decision-making as they scale their operations. For instance, in October 2025, the ICAI’s launch of MSME clinics across all 183 branches nationwide, offering pro bono assistance in finance, governance, and loan-related matters, reflects the growing institutional recognition of accounting service needs within this segment.

India’s Emergence as a Global Finance and Accounting Outsourcing Hub

India has strengthened its role as a preferred global hub for finance and accounting outsourcing, supported by a large base of skilled professionals, competitive operating costs, and a mature digital ecosystem. The outsourcing landscape continues to appeal to multinational companies looking for reliable, scalable, and technology-enabled accounting services to enhance efficiency and support global operations. For instance, in November 2025, Springline Advisory established a strategic partnership with Ahmedabad-based firms Infinity Globus and Smart Accountants, expanding its global team to over 750 professionals, highlighting the growing international investment in India’s accounting outsourcing capabilities.

Market Restraints:

What Challenges the India Accounting Services Market is Facing?

Shortage of Qualified Accounting Professionals

India is facing a growing shortage of qualified accounting professionals, as the supply of newly certified talent struggles to keep pace with rising domestic and offshore demand. Challenges such as lower student enrollment and stringent qualification requirements are tightening the talent pipeline. This skills gap is limiting firms’ ability to scale operations, increasing compensation pressures, and constraining overall service delivery capacity across the accounting services market.

Fragmented Market Structure and Limited Firm Scalability

The India accounting services market remains highly fragmented, with most chartered accountancy firms operating as small partnerships. This structure restricts the ability of domestic firms to scale operations, invest in advanced technology, and broaden service offerings to match multinational competitors. Long-standing regulatory constraints have limited consolidation and visibility, although recent policy reforms are gradually encouraging greater collaboration and growth within the sector.

Rapid Technological Disruption and Automation of Routine Services

The growing pace of AI, automation, and cloud accountancy systems is changing the conventional models of service delivery. Automation of routine operations like data entry, elementary bookkeeping, and standard tax returns is on the rise, and it is straining the fee design of traditional compliance services. Companies that do not invest in technology upgrading and transition to value-added advisory services can expect to lose their margins and be forced out of the market in the more digitized world order.

Competitive Landscape:

The India accounting services market has a moderately concentrated competitive environment, driven by the presence of large global professional services firms, along with a broad spectrum of local players, including regional and specialty players. The intensity of competition is rising as players begin to move beyond traditional compliance work into advisory and technology-enabled services, as well as outsourcing. Changes in regulations affecting the tenure of audits are also shifting the dynamics of client allocation, presenting opportunities for mid-sized players to add to their audit business. However, increased private sector investment in accounting outsourcing and supportive government policies to enhance local capabilities are also driving the evolution of the market.

Recent Developments:

• September 2025: PwC India launched a new platform, Navigate Tax Hub, designed to support tax and regulatory functions using generative AI. Developed as part of the firm’s long-term Vision 2030 strategy, the platform integrates advanced AI tools with PwC India’s in-house tax expertise. It also features a comprehensive repository of curated tax and regulatory content sourced from recognized authorities, enabling more efficient analysis, interpretation, and compliance support for professionals and clients.

• July 2024: UK-based RSM announced plans to quadruple its India workforce to 5,000 professionals over a three-year period, with a focus on expanding accounting services including consulting, audit, and tax advisory capabilities.

India Accounting Services Market Report Coverage: