India commands $1billion in consulting, but no homegrown McKinsey—Sanjeev Sanyal reveals why

Despite fueling the global consulting engine with talent, India remains without a marquee consulting brand. Economist and PM Economic Advisory Council member Sanjeev Sanyal unpacked this disconnect on The Neon Show, highlighting the structural roadblocks that hold Indian firms back in a  $280 billion global industry.

India’s contribution stands at just $1.09 billion, despite thousands of Indian consultants powering strategy operations at global majors like McKinsey, BCG, and the Big Four.

“Indians dominate the talent pool in global consulting. You’ll find them everywhere — but not running an Indian firm of equal stature. This paradox has even caught the attention of the Prime Minister and Commerce Minister,” Sanyal said.

A system rigged against its own

Sanyal pointed to outdated regulations and professional silos as key reasons why Indian firms struggle to scale:

• Unfair tendering norms: High revenue thresholds (₹500 crore and above) for government and private contracts exclude emerging Indian consultancies.
• No credit for past work: Indian consultants can’t carry forward their experience under Big 7 firms when setting up their own ventures — even though those global firms are credited for the same work.
• Siloed professions: India’s councils for lawyers, accountants, and architects bar the formation of multidisciplinary partnerships, limiting the kind of integrated service models that global firms thrive on.

“These professional silos are like medieval guilds. In a world that runs on integrated problem-solving, India’s rules are forcing consultants to stay in their boxes,” Sanyal said.

Branding bans and missed global opportunities

Unlike foreign firms that build brands overseas and enter India through proxies, Indian firms face tight restrictions on branding and advertising — denying them visibility at home and abroad.

“Even at global conferences in India, you’ll see KPMG, BCG sponsoring, but no Indian name. We’re not allowed to create one,” Sanyal noted.

This hampers participation in global trade opportunities — even in markets where advertising is allowed — leaving Indian firms invisible and excluded.

What needs to change

Sanyal advocates for regulatory reform without compromising ethics:

• Permit multidisciplinary consulting firms.
• Allow Indian firms to build global brands and raise capital.
• Modernise advertising rules while avoiding extremes.

“This isn’t about removing all regulations — it’s about striking the right balance between professional ethics and modern business realities,” he said.

Case for consulting freedom

He draws a parallel with the IT sector, which grew without gatekeeping.

“The IT sector in India flourished because no one controlled it. There was no Bar Council of IT. We need that kind of openness for consulting too,” Sanyal said.

India’s consultants already build empires — just not under Indian flags. Without bold reforms, the talent will stay world-class, but the brands will remain foreign.