NITI Aayog unveils 4-pronged roadmap to boost India’s professional services. What it proposes

India’s services economy has become a major growth engine. But as professional services — from law and accounting to architecture, engineering and healthcare — expand their role in exports, employment and innovation, NITI Aayog has flagged regulatory gaps that could limit their global competitiveness.

In its third Services Thematic Series report, India’s Services Sector: Insights on Regulatory Regime in Professional Services, NITI Aayog assesses the sector’s regulatory framework, compares it with select international jurisdictions and outlines a four-pronged strategy to make professional services more competitive.

The report comes as India moves towards its demographic peak and seeks to realise the Viksit Bharat 2047 vision. It argues that professional services can drive high-skilled employment, entrepreneurship and innovation while helping India expand its share of global services trade.

Why professional services matter 

The report places professional services at the heart of India’s services-led growth. India was the seventh-largest global services exporter in 2024, with a 4.3% share of global services exports, up from 2% in 2005. Professional and management consulting services alone accounted for nearly 20% of India’s total services exports in 2024-25.

Professional services are also growing rapidly. RBI data cited by NITI Aayog shows the segment accounted for 19.7% of India’s services exports in 2023 and grew at an 18% CAGR between FY15 and FY25. Professional services made up 10% of services imports, which grew at an 8% CAGR over the same period.

The report defines professional services as high-value, knowledge-intensive activities including legal services, accounting and auditing, architecture, engineering and health services.

Their importance extends beyond exports. Professional services support manufacturing, construction, agriculture and other services, making them an important part of the wider services value chain.

India’s competitive position has also strengthened. NITI Aayog says India’s revealed comparative advantage in professional and management consulting services rose from 0.95 in 2005 to 3.0 in 2024.

Regulatory problem: one sector, very different rules 

A key finding is that India lacks a uniform regulatory regime for professional services.

Professions such as medicine, law, accounting and auditing operate under detailed legal and institutional frameworks. Others, including engineering, landscape architecture and urban planning, are lightly regulated or lack formal professional oversight.

The report examines these frameworks across three dimensions: laws governing professional practice; qualifications and licensing requirements; and restrictions on service supply, including rules on legal forms of establishment, advertising and fees.

The regulatory environment also extends beyond profession-specific rules. Taxation, consumer protection, competition, labour laws, technology and data protection, investment and cross-border trade regulations all influence how professional services firms operate.

India looks restrictive in some professional services 

NITI Aayog uses the OECD Services Trade Restrictiveness Index as one international benchmark, while noting its methodological limitations.

Among the professional services covered by the index, India has a high restrictiveness score for legal services at 0.865, followed by accounting at 0.762 and architecture at 0.537. Engineering is considerably more open, with a score of 0.155.

The report notes that the OECD index covers only accounting, architecture, engineering and legal services, so its scores do not capture the full regulatory landscape.

It also places domestic regulation in the context of international trade. As of August 2026, the WTO’s Joint Initiative on Services Domestic Regulation disciplines had entered into force for 56 WTO members, while 72 economies were committed to implementing them. India is not a signatory, although the disciplines apply on a most-favoured-nation basis.

Legal services: Recognition & business structures emerge as key issues

NITI Aayog identifies several areas where India’s legal services framework could evolve.

The Advocates Act, 1961 primarily recognises advocates, leaving a regulatory gap around in-house counsel, legal process outsourcing professionals, legal consultants and other legal professionals. The report suggests expanding statutory recognition to create a more inclusive framework.

Another issue is the legal structure through which law firms can operate. Advocates can practise as sole proprietorships, partnerships or LLPs, but private limited law firms and multidisciplinary practices remain prohibited.

NITI Aayog says multidisciplinary practices could be considered with safeguards covering non-lawyer ownership and voting rights, confidentiality, conflicts of interest, registration and regulatory oversight. Such structures could help Indian legal service providers respond to evolving business needs and compete globally.

Advertising rules are another area flagged by the report. Rule 36 of the Bar Council of India Rules prohibits advocates from advertising or soliciting work directly or indirectly. While the rules were relaxed in 2008 to permit websites with basic professional information, NITI Aayog says a contemporary approach could allow lawyers to use digital platforms responsibly while maintaining professional and ethical standards.

The report also points to the absence of a mandatory continuing professional development framework and gaps in structured skilling for paralegals, law clerks and legal assistants.

Accounting & Auditing: Global mobility and bookkeeping regulation 

Accounting, auditing and bookkeeping are another area where NITI Aayog sees room for reform.

Exports of these services rose from $617 million in 2014-15 to $3.324 billion in 2024-25, according to RBI data cited in the report.

At the same time, India’s regulatory regime remains relatively restrictive for foreign accountants and audit firms. Foreign professionals seeking to operate independently generally need ICAI registration under Indian law or must work through affiliations with Indian chartered accountancy firms.

NITI Aayog proposes expanding mutual recognition agreements with international accounting bodies. Such agreements could help Indian qualifications gain recognition abroad while enabling reciprocal access for foreign professionals.

Bookkeeping is another gap. The report says the profession has limited formal oversight and proposes a comprehensive framework covering qualifications, ethical standards and record-keeping, along with formal training and skilling.

For foreign professionals, NITI Aayog suggests a phased accreditation pathway as an optional route while retaining existing licensing requirements.

Architecture: licensing exam, registration reform 

The report recommends a professional examination for architects covering practical knowledge, legal and regulatory awareness, ethics and the application of architectural principles.

Currently, Council of Architecture registration is based on completion of a recognised academic programme and does not require a separate professional licensing examination. NITI Aayog says an exam could standardise competency assessment and strengthen public confidence.

Registration could also be streamlined. While the Council of Architecture grants registration, some local authorities require additional registration, creating a fragmented system.

NITI Aayog also suggests allowing architects to use a wider range of legal structures, including LLPs, rather than limiting practices largely to sole proprietorships and partnerships.

Landscape architecture presents another regulatory gap. While education is covered by the regulatory framework, there is no comparable framework governing professional practice. NITI Aayog says a legal framework could establish standards for licensing, registration, ethics and oversight.

The report also notes that India has no mutual recognition agreements for architects and suggests pursuing MRAs to improve international mobility and recognition of Indian qualifications.

Engineering: open market, but a regulatory gap 

Engineering stands apart from several other professional services because India has relatively few rigid restrictions on the profession.

The sector accounted for 67.2% of all technical degrees between 2015 and 2022 and is a major employment generator, particularly in civil engineering and construction. Engineering services exports rose from $1.769 billion in 2014-15 to $13.766 billion in 2024-25, a 22.8% CAGR.

India also permits 100% FDI in engineering services, with relatively open international participation.

But NITI Aayog identifies a different challenge: the absence of a central statutory framework for engineers involved in construction and related activities.

The report suggests such a framework could set minimum standards, establish a code of ethics and introduce accountability mechanisms, particularly for activities involving public safety.

India is already part of the Washington Accord through the National Board of Accreditation, which became a full signatory in 2014. However, it is not a member of the Sydney or Dublin Accords. India is also a member of the International Professional Engineers Agreement.

Healthcare: Portability & unfinished regulatory reforms 

Healthcare and allied healthcare face regulatory challenges around mobility and standardisation.

NITI Aayog highlights administrative requirements that can restrict interstate mobility of medical practitioners, nurses and allied health workers, reducing workforce flexibility and making it harder to address regional shortages.

The report also points to the partial implementation of the National Commission for Allied and Healthcare Professions Act, 2021. As of 2025, only 26 states and Union Territories had constituted the required State Allied and Healthcare Councils, with some deviations from the Act and some states yet to notify their councils.

NITI Aayog says this creates regulatory ambiguity and insufficient oversight, affecting the standardisation of education, licensing and professional practice.

The National Exit Test, or NExT, is another unfinished reform. Although mandated under the relevant laws, the examination had not yet been introduced. NITI Aayog says this could delay efforts to standardise competency assessment and streamline registration of medical graduates.

The report also recommends expanding mutual recognition and reciprocity arrangements for medical, dental, veterinary, nursing, midwifery, paramedical and physiotherapy professionals.

Four-pronged strategy: What NITI Aayog wants next 

Against these sector-specific gaps, NITI Aayog proposes a four-pronged strategy to strengthen India’s professional services ecosystem.

1. Continuous professional development: The first pillar is continuous professional development. The report sees upskilling as increasingly important as technology changes the nature of professional work. The focus is not just on initial qualifications but on helping professionals keep pace with changing standards, technologies and global market requirements.

2. Elevate professional services within the services value chain: The second pillar is to strengthen professional services within the wider services value chain. Professional services support businesses across manufacturing, construction, agriculture and other services, while contributing to exports and high-value employment.

3. Adopt global best practices: The third pillar calls for greater adoption of global best practices. This includes improving regulatory clarity, strengthening professional standards, facilitating recognition of qualifications and examining international approaches that could help Indian professionals compete more effectively.

4. Advance emerging trends: The fourth pillar focuses on emerging opportunities that could reshape professional services. The report highlights artificial intelligence, sustainability and geopolitical changes.

AI-powered chatbots, intelligent document processing and blockchain-based smart contracts are already transforming law, accounting and consulting. NITI Aayog sees an opportunity for India to move beyond back-end execution towards AI-enabled decision-making and develop proprietary tools in financial modelling, legal analytics and consulting.

India has already built a strong position in global services. The next phase, according to the NITI Aayog report, will depend on moving up the value chain — from cost-driven delivery to high-skilled, innovation-led and globally integrated professional services.