Dear Professional Colleagues,
"India lives in its villages." - Mahatma Gandhi
These words resonate even more deeply today, as the spirit of enterprise once rooted in rural India now fuels a nationwide wave of innovation and growth. India's strength lies in its wealth of ideas and entrepreneurial spirit. This innovative drive, deeply rooted in our culture, is propelling the nation toward becoming a global economic leader. At the heart of this transformation are MSMEs and Startups, which are important constituents and the backbone of our economy.
The rise of MSMEs and Startups in Tier-II and Tier-III cities is helping to bridge the rural-urban divide with the 'glocal' approach fuelling localized development that is attracting global attention. I am convinced that the risk-taking spirit of Indians, exemplified by MSMEs and Startups, is a driving force in India's growth story.
MSMEs and Startups: The Backbone of India's Growth
Micro, Small and Medium Enterprises (MSME) sector, which is estimated to comprise more than 6 crore enterprises, has emerged as a highly vibrant and dynamic sector of the Indian economy, fostering entrepreneurship, and generating employment opportunities, next only to agriculture.
India's economic resurgence is being powerfully driven by the rapid growth of the MSME sector and the expanding startup ecosystem. MSME exports have witnessed an extraordinary surge from 
3.95 lakh crore in 2020-21 to 12.39 lakh crore in 2024-25, now contributing nearly 46% to India's total exports.
India is rapidly emerging as a global startup leader, ranked third worldwide with over 157,000 DPIITrecognized startups and around 110 unicorns. While the US leads with 75,000 startups and 700+ unicorns, India's dynamic growth reflects its rising innovation and entrepreneurial spirit. The MSME sector and Startup ecosystem are truly transforming the economy, especially in job creation and innovation. These sectors have generated millions of jobs across sectors, with increasing participation from women-led and rural-based enterprises, reflecting a shift towards inclusive growth.
The resilience and adaptability of MSMEs are evident in their rising share of Gross Value Added (GVA) in India's GDP from 27.3% in 2020-21 to 30.1% in 2022-23, highlighting their role in ensuring economic stability.
As India advances from the 5th largest to the 4th largest (IMF 2025) economy in the world, overtaking Japan, the role of these businesses is not just relevant, but essential. They form the backbone of a self-reliant, future-ready India.
The Role of Chartered Accountants in Economic Progress
Nation building requires collective efforts, and Chartered Accountants are pivotal partners in this journey. CAs act as the trusted advisors, financial strategists, and compliance enablers. Their expertise is instrumental in achieving a record GST collection in April, 2025 and constant growth in GST revenue collection.
CAs connect entrepreneurs with government schemes and regulatory frameworks by providing guidance on accurate documentation, financial planning, and reporting. They ease access to funding through valuation, investor readiness, and financial modelling. With deep knowledge of economic policies, Chartered Accountants translate government vision into sustainable growth, fostering transparency, accountability, and economic development.
ICAI's Initiatives to Empower MSMEs and Startups
As a committed Partner in Nation Building, the Institute has consistently aligned itself with the government's mission to foster the growth of MSMEs and Startups across the country.
Through flagship initiatives such as the MSME Yatra, Startup Sphere, Startup Manthan, and Startup Samvad, ICAI actively inspires entrepreneurs nationwide. It's MSME and Startup Yatra is recognized in the Asia & India Book of Records for reaching 100+ cities in 100 days, boosting awareness and capacity building.
The Institute has set up 10 Startup Incubation Centres and partnered with various institutions such as IIM Lucknow and Gujarat's i-Hub to provide resources via the ICAI Startup Gateway
These efforts collectively foster innovation, value creation, and job opportunities, driving India's journey towards a developed and inclusive economy.
In alignment with the Government of India's vision of empowering the MSME sector, now ICAI is planning to organize MSME Clinics at ICAI branches every Friday to provide financial guidance, business strategy support, and mentoring. Moreover, we are planning to set up a system to resolve MSME Grievances through our Incubation Centres, Helpdesks, Mentorship Programs, and the MSME Portal.
Now, let us look at some of the developments related to the profession:
MSME Mahotsav and MSME and Startup Conclave
The ICAI is commemorating International MSME Day on 27th June, 2025 by organizing a nationwide awareness Program, 'MSME Mahotsav', to educate and assist stakeholders in navigating the evolving business landscape. Further amplifying its outreach, ICAI is also hosting a dedicated MSME and Startup Conclave in Mumbai on 26-27 June, 2025, bringing together Chartered Accountants, business leaders, and entrepreneurs to engage in meaningful dialogue, share knowledge, and explore opportunities for collaboration. This year, ICAI has set a target to educate and support at least 1 lakh MSMEs through ICAI's vast national network, offering free consultancy and handholding.
ICAI Celebrates Accounting Standards Day
On 3rd May, 2025, ICAI reaffirmed its commitment to transparency and accountability by celebrating Accounting Standards Day pan India across all five regions, reaching a wide audience of over 1500 industry professionals. These standards form the foundation of trust in financial reporting, enabling investors, regulators, and the public to make informed decisions, promoting economic stability.
The event in Delhi was inaugurated by the Honourable Chief Minister of Delhi, Smt. Rekha Gupta as the Chief Guest. In her address, Hon'ble Chief Minister of Delhi acknowledged the vital role Chartered Accountants play in tax collection and the nation's economic growth, referring to them as "Financial Doctors" who safeguard India's financial health. The Chief Minister further proposed that the Delhi Government looks forward to engaging ICAI as a 'Knowledge partner' to boost the economic growth.
India-UK FTA: Opens Global Gateway for Indian Enterprises
The recently concluded India-UK Free Trade Agreement (FTA) marks a major leap in India's economic trajectory. As reported, this comprehensive pact will not only eliminate tariffs on 99% of Indian exports to the UK but also significantly enhance opportunities in services sectors such as IT, financial services, and professional consulting, aligning seamlessly with India's vision of Viksit Bharat 2047.
Notably, the FTA introduces a three-year exemption from UK social security contributions for Indian professionals, a provision that will bolster the competitiveness of our service providers and provide substantial benefits. The FTA's provisions on services, including IT and professional services, coupled with eased mobility for professionals, create an environment conducive to innovation and global collaboration. These developments are poised to empower Indian MSMEs and entrepreneurs to expand their global footprint and contribute significantly to India's economic growth.
ICAI stands committed to support members and businesses in leveraging this landmark pact, committed to deepening India-UK economic ties and enabling professionals to thrive on the global stage.
ICAI Disciplinary Directorate Steps Up with Digital and Skill Upgrades
To enhance transparency, accessibility, and operational efficiency, the Disciplinary Directorate of ICAI has revamped its web portal - https://disc.icai.org. The redesigned platform now serves as a centralized hub for all disciplinary matters, offering easy access to updates, meetings, and Orders/Findings from the Board of Discipline and Disciplinary Committee, all displayed on the homepage for user convenience.
Additionally, in May, 2025, a specialised three-day training programme on Artificial Intelligence was conducted for the Directorate's officers. This initiative will equip them with the skills to integrate AI tools into disciplinary processes, promoting smarter, technologydriven operations.
ICAI Bhawan, Gurugram Inauguration: A Milestone in Growth and Empowerment
Each new building (ICAI Bhawan) marks a significant milestone in our journey to build a stronger, more connected ICAI, one that ensures access to quality education and continuous professional development across the country.
ICAI inaugurated the new building of the Gurugram Branch of NIRC of ICAI on 28th May, 2025, at Manesar. This new establishment reflects ICAI's resolute commitment to empower our members and students by expanding access to world-class learning infrastructure.
Research Collaboration with SEBI - A Preventive Approach to Capital Market Financial Fraud in India
As part of our ongoing efforts to strengthen collaboration with key regulatory bodies, I, along with CA. Prasanna Kumar, Vice President, ICAI, and Central Council Members, CA. Mangesh Kinare, CA. Durgesh Kumar Kabra, CA. Priti Savla, and CA. (Dr.) Sanjeev Kumar Singhal had the privilege of meeting Shri Tuhin Kanta Pandey, the newly appointed Chairman of SEBI, Shri Amarjeet Singh, Whole Time Member, SEBI, and Shri Pramod Rao, Executive Director, SEBI.
During the meeting, both SEBI and ICAI representatives discussed on jointly developing a comprehensive research publication titled "From Reaction to Resilience: A Preventive Approach to Capital Market Financial Fraud in India". This significant initiative aims to delve into the various types and emerging trends of financial frauds and scams in the capital markets, emphasizing the importance of a proactive and preventive framework to safeguard investor interests and market integrity.
This collaboration underscores the shared commitment of ICAI and SEBI towards enhancing transparency and resilience in India's financial ecosystem.
International Engagements for the Development of Profession
ICAI continues to strengthen its global presence to promote international integration and professional excellence in accountancy. On 29th April, 2025, I, as Board member, represented ICAI at the XBRL International Board Meeting in Oxford, where global leaders discussed advancements in digital financial reporting. Strengthening diplomatic and institutional ties, I met India's High Commissioner, H.E. Shri. Vikram K. Doraiswami, High Commissioner of India to the UK.
ICAI participated in the IESBA-IAASB-Jurisdictional Standard Setters (JSS) meeting held on 7-9 May, 2025 in New York, USA. At the meeting, the ICAI representative gave a presentation on the adoption of auditing standards for less complex entities. During the meeting, ICAI also gave inputs on ethics, audit independence, and technology governance, highlighted challenges in adopting the IESBA Code of Ethics on sustainability in the Indian context, particularly concerning BRSR and the move to assessment.
Overseas Visits
In a significant stride towards advancing sustainability and regional collaboration, I had the honour of addressing the esteemed gathering at the event "Sustainable Finance and Green Banking" in Muscat, Oman, on 20th May, 2025. Invited as the Guest of Honour, I shared the dais with Dr. Zahran Al Salti, Dean of the College of Banking and Financial Services (CBFS), at this event jointly organized by the ICAI Muscat Chapter and CBFS. My address focused on the pivotal role finance plays in shaping a sustainable and resilient future, emphasizing that financial institutions must lead the transition toward green economies through innovation, accountability, and impact-driven practices.
In a dialogue with Dr. Zahran Al Salti, we explored avenues for academic and institutional collaboration, including enriching the accounting curriculum, through joint research initiatives and facilitating faculty and student exchanges. We agreed to support CBFS and to co-develop a White Paper titled "The Effect of Green Finance on the Economy of Oman".
Further strengthening bilateral ties, I met H.E. Shri Godavarthi Venkata Srinivas, Indian Ambassador to Oman, with ICAI Oman Chapter representatives, to deepen India-Oman cooperation and advocate for due recognition of the CA qualification in Oman.
In a key meeting with H.E. Sayyid Salem bin Muslim Al Busaidi, Under Secretary for Human Resources Development at the Ministry of Labour, Sultanate of Oman we discussed professional collaboration focused on capacity building for Omani talent, structured training systems, and establishing PAO in Oman.
Additionally, I engaged with Dr. Abdullah Al Harthy, OCCI Board Member and Chairman of the Omani CFO Mentor Program, proposing regional integration and creating a unified framework in accounting and auditing.
Recently, I visited Singapore and met H.E. Dr. Shilpak Ambule, High Commissioner of India to Singapore, Mr. Vivekananda Neelakantan, Registrar of the Singapore International Arbitration Centre (SIAC); and Mr. Charles Luk, Manager - Legal, Strategy and Development at Singapore International Mediation Centre (SIMC). I also met Mr. George Lim SC, Chairman and Mr. Siddharath Jha, Counsel of the Singapore International Mediation Centre (SIMC), as well as Mr. Teo Ser Luck, President, and Ms. Fan Kor, Chief Executive Officer, Institute of Singapore Chartered Accountants (ISCA), to explore avenues for collaboration, MoUs, and joint professional development.
These initiatives show ICAI's commitment to advancing global relevance, strengthening professional standards and capacity building within the accounting profession.
Developing Professional Excellence with AI
ICAI has taken notable strides in integrating Artificial Intelligence into the professional development of Chartered Accountants. Over the past eight months, more than 450 batches of certificate courses have been conducted under the AICA Level 1 program, with over 20,000 CAs registering, reflecting a strong interest in future-ready skills. Soon this course will be imparted through our overseas Chapters benefiting our members residing abroad. Moving ahead, ICAI has now approved AICA Level 2 Certificate Course an advanced 5-day program. The course will focus on how Chartered Accountants can implement AI in their clients' offices to enhance operational efficiency and service quality.
Expanding National Presence
I am pleased to share with you that the Council has approved setting up two branches under SIRC, namely, Nizamabad City (Telangana) and Khammam City (Telangana). With this, we now have 179 branches in the country, supporting the professional development of members and students, while actively contributing to capacity building and inclusive growth at the grassroots level.
ICAI Stands with the Nation
ICAI salutes the courage and determination of our soldiers, taking immense pride in their valour during operation 'SINDOOR'- a bold message from a New Bharat, that India will not compromise on its sovereignty.
Reaffirming the philosophy of 'Nation First', ICAI has extended its support to the Government and Indian Army in their operations against terrorism. On 9th May, 2025 the ICAI's Central Council lauded the Indian Armed Forces and issued a clarion call to the CA fraternity to stand with our armed forces. ICAI's leadership emphasized that the over 14.5 Lakh financial soldiers of ICAI are committed not just in words but through meaningful action. In every national crisis, ICAI remains a steadfast pillar of support to our motherland.
Each One, Teach One: An Appeal to Inspire, Uplift & Transform
Education is the most important weapon which you can use to change the world - Nelson Mandela
As a socially responsible institution, ICAI believes in education as a catalyst for national transformation. With a strong community of over 4.8 lakh members and a million students, we have both the ability and the responsibility to give back meaningfully.
The 'Each One, Teach One' initiative is call to every member to take time to mentor at least one student, nurturing their confidence, competence, and character. It's about more than teaching, it's about inspiring, guiding the next generation of professionals. By mentoring one, we uplift many. Join the movement and register today at https://eoto.icai.org.
Conclusion: Together Towards a Brighter India
India is rising with purpose and clarity poised to lead as the world's fastest-growing major economy. Chartered Accountants are vital to this journey, guiding innovation with financial acumen, ensuring compliance, and enabling sustainable growth. They are the backbone of enterprise and policy execution, transforming ambition into impact.
As we move forward with confidence, it is this unitybetween entrepreneurs, professionals, and policymakers working together that will define India's success and inspire generations to come.
" उड़ान अभी बाकी है, इम्तहान अभी बाकी है,
जो चमके हैं आसमान में, वो सितारे अभी बाकी हैं। "
The best is yet to come, and together, we shall reach for the stars.
CAclubindia
