NITI Aayog professional services regulatory reforms

NITI Aayog has released a report titled ‘India’s Services Sector: Insights on Regulatory Regime in Professional Services’ aimed at modernizing the regulatory framework of India’s professional services to enhance global competitiveness and export potential.

The report highlights that professional and management consulting services accounted for nearly 20 per cent of India’s total services exports in 2024-25, contributing to India’s position as the seventh-largest global exporter of services. To maximize this potential, the think tank suggests improvements in professional mobility, the recognition of foreign qualifications, and ease of doing business.

Specific recommendations include allowing law firms to operate as multi-disciplinary practices (MDPs) and revisiting Bar Council of India rules that prohibit lawyers from advertising or soliciting work. To mitigate risks, the report suggests safeguards such as restricting non-lawyer ownership and implementing strict confidentiality protocols. Additionally, the agency noted the need for regulatory clarity regarding foreign investment, taxation of revenue from foreign law firms, and partnership terms between Indian and foreign entities. While sectors like law, medicine, and accounting have established frameworks, the report identifies a lack of formal oversight in fields such as engineering and urban planning.