The rules governing professionals in India may see changes in the coming years, with NITI Aayog suggesting steps to make professional licensing, qualification recognition, and movement between states and countries easier.The recommendations cover several major fields, including law, accounting, architecture, engineering, healthcare and allied healthcare. The report examines issues related to entry into professions, licensing, business structures, recognition of qualifications, and arrangements that allow professionals to work across borders.The proposals assume importance as services continue to drive India’s economy. NITI Aayog said the services sector contributed 55 per cent of India’s GDP in 2023-24. India was also the seventh-largest services exporter globally, with a 4.3 percent share of worldwide services exports during the year. Professional and management consulting services accounted for nearly one-fifth of India’s services exports in 2024-25.
NITI Aayog points to gaps in professional regulation
The report has identified gaps in the way different professional sectors are regulated. These include rules for entering a profession, obtaining licenses, getting qualifications recognised and setting up professional businesses.The problems vary from one sector to another. In legal services, the report looks at the recognition of different categories of legal professionals, rules for foreign lawyers and law firms, business structures and advertising.In accounting and auditing, it examines restrictions on foreign professionals, the roles of the Institute of Chartered Accountants of India (ICAI) and the National Financial Reporting Authority (NFRA), and the regulation of bookkeeping services.
Healthcare professionals face mobility hurdles
Healthcare is one area where the report has highlighted a clear gap. Professionals do not currently have one nationwide system that allows their licences to be transferred easily from one state to another.This can create difficulties for doctors and other healthcare professionals who move between states. The issue can become more complicated in the case of foreign medical graduates, who face additional requirements related to qualification and practice.NITI Aayog has recommended interstate licence portability, greater regulatory clarity and timely implementation of the National Exit Test (NExT). It has also called for full implementation of the National Commission for Allied and Healthcare Professions Act.
Engineering needs clearer rules
The report has also raised concerns about the regulatory position of engineers. It notes that India does not have a comprehensive statutory framework governing the practice of engineers, particularly those working in construction and infrastructure. NITI Aayog has proposed a central statutory framework and clearly defined areas of professional practice.
Greater focus on international recognition
Another key concern is the recognition of Indian professional qualifications in other countries. NITI Aayog has examined mutual recognition arrangements and compared India’s rules with those followed in selected countries.In architecture, for example, professionals in India mainly operate through sole proprietorships and partnerships. Countries such as the UK, New Zealand and Singapore allow additional structures, including limited liability partnerships and companies.The report suggests that wider mutual recognition arrangements could help Indian professionals gain better access to overseas markets.
Four priorities for professional services
NITI Aayog has identified four broad areas for future action: continuous professional development, adoption of better practices, strengthening professional services within the wider services economy and responding to new developments.For legal services, the recommendations include clearer rules for foreign law firms, mutual recognition arrangements, changes to advertising rules and the possibility of multidisciplinary practices with safeguards.For accounting, the report recommends stronger oversight, wider mutual recognition agreements and phased accreditation for qualified foreign professionals. For architecture, it suggests a licensing examination and simpler registration.
AI is changing the nature of professional work
The recommendations come at a time when artificial intelligence and automation are changing professional services. NITI Aayog has identified research and development, engineering design, technology operations and consulting as areas where demand for specialised skills is growing.For students and working professionals, licensing, accreditation, continuing education and recognition of qualifications could become increasingly important.NITI Aayog has clarified that its recommendations are meant to guide further discussion and are not mandatory measures. Any actual changes will depend on decisions by the government and the respective professional regulators.
