30 Lakh CAs needed by 2047 says ICAI President

• On 12th February 2024, Ranjeet Kumar Agarwal was announced as the President of the Institute of Chartered Accountants of India (ICAI) for the council year 2024-25.
• Recently, he dropped a bombshell of an ambitious plan – “By the time India reaches its 100 years of independence, there will be an expected requirement of 30 lakh CAs.”
• But the question is, how would they achieve this ambitious milestone?

On-the-ground facts

ICAI stands as the largest accounting body worldwide.

With 5 Regional Councils, 175 Branches, 50 Overseas Chapters, and 31 Representative Offices, it continues to promote inclusive growth and enhance the profession’s reputation.

ICAI has around 4,00,000 members globally and approx. 8,50,000 Lakh active students as of today.

To achieve this ambitious goal of 30 lakh CAs by 2047, ICAI needs to produce an average of 130,000 new CAs annually, until 2047.

So, how will it pan out with the current low pass rates? Dropping in the student registrations?

Well, ICAI has strategic plans.

Source – ICAI’s 72nd Annual Report. There has been a significant drop in CA aspirants.

DRISHTI- President Agarwal’s new initiative

On 21st February 2024, Ranjeet Kumar Agarwal presented his new initiative “DRISHTI,” which means ‘vision’, during a press conference in New Delhi.

This initiative is predicted to help increase the total number of CAs in India.

His vision aims to drive groundbreaking advancements in:

• D=Digitalization
• R=Research
• I=Integrity
• S=Skills
• H=Handholding
• T=Transparency
• I=Independence within the Institute.

Here is how they intend to implement the same: 

Targeting students from the school level

ICAI has established partnerships with more than 500 colleges and schools across India.

They are appointing local faculty members and providing them with the necessary assistance to teach CA courses within their respective institutions.

Additionally, they have also implemented measures to support career counseling initiatives at the school level.

They will offer online query resolutions and tuition classes under these agreements, Agarwal informed The Indian Express.

Easily accessible training programs

ICAI plans to offer free lectures from top-notch faculties on its website and YouTube.

These lectures will not only be limited to CA students but also open to non-CA students who wish to learn and explore career opportunities.

The ICAI aims to extend its training programs to reach even students in rural areas.

To achieve this, new training centers will be established and technology will be utilized to provide remote training.

Mentoring

Furthermore, they are also introducing another program called ‘Each One, Teach One’, which encourages existing members to mentor other CA students.

Even more affordable fees

Currently, a student pays a total of INR 85,300 (excluding coaching) over five years to become a CA. Which is anyway affordable compared to MBAs, engineering, and other professional courses.

Agarwal stated, “We are enabling the middle class in our country to pursue a career in Chartered Accountancy to secure a minimum package of Rs 10 lakh.”

To expand its impact, ICAI announced in 2022 that students registering from selected territories would receive a 75% reduction in the registration course fee for all levels of CA courses until, March 31, 2025.

The states include,

1. Jammu and Kashmir
2. Ladakh
3. Arunachal Pradesh
4. Assam
5. Manipur
6. Meghalaya
7. Mizoram
8. Nagaland
9. Sikkim
10. Tripura

“7,000 students from both Jammu and Kashmir and the Northeastern states have benefited through this initiative,” said Agarwal.

Reduced articleship timeline and increase in stipend

In 2023, the ICAI addressed students’ concerns by shortening articleship from 3 to 2 years, making CA more lucrative for Gen-Z under the new scheme.

In response to numerous students’ requests for higher CA articleship stipends, the ICAI has decided to double the amount provided.

Making the CA curriculum attractive

AI Skills

ICAI has established a committee on “AI in ICAI” to explore the potential of AI for the development of students, members, and employees.

The institute is also providing digital tools to students nationwide.

“Ethics and technology are now part of the final level curriculum to equip future CAs with necessary skills for the global landscape,” Agarwal added.

ESG

The President of ICAI emphasized that the institute has been at the forefront of developing Sustainability Reporting Standards and shaping the ESG reporting landscape in the nation.

Successful campus placements

Agarwal shared that out of the 22,000 newly qualified CAs in 2023, over 9,000 were placed through campus placements by 138 companies.

The remaining students preferred other opportunities outside of campus placements.

He emphasized that there is no unemployment for chartered accountants, as those who qualify have various career options available to them.

Lucrative packages

President Agarwal shared that in the year 2023-24, over 9,000 Chartered Accountants were successfully placed, with an average salary of INR 12.5 lakh per annum.

The highest package offered within India was INR 24 lakh, while the highest package abroad stood at INR 41 lakh per annum.

Global opportunities

ICAI aims to enhance its global presence this year, creating opportunities for Indian CAs overseas and attracting foreign investment to India.

Through regular communication, ICAI has provided valuable comments and inputs in the field of Accounting, Bookkeeping, and Auditing services (CPC 862) during ongoing trade negotiations with its FTA partners – UK, Canada, and Australia.

Furthermore, ICAI has formed a new committee called the Committee for Aggregation of CA Firms to unite smaller firms and enhance their global competitiveness through resource pooling.

Infrastructure development

ICAI announced that 11 centers of excellence are poised to be established throughout the country.

But there are challenges…

Drop in the number of registrations

As mentioned above, the total number of student registrations dropped by 34%, from 2010 to 2021.

The pass percentage is falling

The pass percentage of the CA Final exam in November 2023 was relatively low. Only 9.42% of the candidates passed the exam, for both Group 1 and Group 2.

To put in numerics, out of the 32,907 students who appeared for the final level, only 3,099 were able to clear the exam.

Frustration due to repeated failures

On top of there is added pressure when you have given 7 attempts at the CA final but still cannot seem to qualify. It can be very frustrating. Many students lose their confidence and end up quitting.

Drop in the number of jobs

Determining the exact unemployment rate for chartered accountants is a challenge, but some sources indicate that it falls between 2% and 3%.

Many even believe an MBA is needed post CA to stay relevant in the evolving role of finance.

Wrapping up

Despite the roadblocks and excessively ambitious goals, ICAI’s new President is steadfast in his visions.

He firmly believes that the CA profession, built on the foundation of ethics, integrity, and independence, will play a pivotal role in propelling India towards becoming a global economic powerhouse by 2047.

ICAI is certainly not a sinking ship, however, the pass percentages for CA students have to be increased to make this course lucrative for the GenZs.

Will you invest 4 years to become a CA?