NITI Aayog proposes regulatory reforms to boost India's professional services exports

Regulatory reforms aimed at improving clarity, professional mobility and recognition of qualifications could help India unlock the full export potential of its professional services sector, according to a NITI Aayog report.

The report, titled India's Services Sector: Insights on Regulatory Regime in Professional Services, said professional services have become a key part of India's services economy and could play a larger role in strengthening the country's position in global services trade.

India was the seventh-largest services exporter globally in 2024, accounting for 4.3% of global services exports. Professional and management consulting services made up nearly 20% of India's total services exports in 2024-25.


Professional services accounted for 19.7% of India's total services exports in 2023 and grew at a compound annual growth rate (CAGR) of 18% between FY15 and FY25, the report said.

"Professional services serve as critical enablers across the broader services sector and have immense potential to enhance India's share in global services trade," NITI Aayog said.

NITI Aayog flags regulatory barriers in professional services

The report said India's regulatory framework for professional services remains diverse and largely sector-specific.

While professions such as medicine, law, accounting and auditing have established legal and institutional frameworks, sectors including engineering, landscape architecture and urban planning are either lightly regulated or lack formal oversight.

NITI Aayog identified several regulatory factors that can affect market entry and the international competitiveness of Indian professional services. These include nationality and residency requirements, educational qualifications, licensing rules, recognition of foreign qualifications and restrictions on the permitted forms of business establishment.

Stakeholder consultations also highlighted challenges around professional qualifications, licensing, recognition of competencies and sector-specific restrictions.

The report warned that excessively restrictive domestic regulations can create barriers for both Indian and foreign professional service providers.

Four-pronged strategy to boost professional services exports

To address these challenges, NITI Aayog proposed a four-pronged strategy focused on continuous professional development, moving professional services higher up the services value chain, adopting global best practices and embracing emerging trends.

The report also proposed sector-specific reforms, including greater regulatory harmonisation and clarity, improved professional mobility, mutual recognition agreements, streamlined registration and licensing processes, wider legal structures for professional practices and phased accreditation pathways for foreign professionals.

Reforms proposed for legal, accounting and architecture sectors

For legal services, NITI Aayog called for recognition of legal professionals beyond advocates, modernisation of legal forms of practice and a review of advertising norms.

In accounting and auditing, the report highlighted the need for stronger regulatory oversight and skilling. For architecture, it recommended streamlined registration, professional examinations and mechanisms to recognise foreign qualifications.

For engineering, the report pointed to the absence of a comprehensive statutory framework governing professional practice, particularly for engineers involved in construction and related activities. A structured regulatory framework, it said, could improve consistency, accountability and clarity.

Reforms could boost India's services trade

NITI Aayog said regulatory reforms must be accompanied by greater skilling, professional mobility and adoption of international best practices.

The proposed measures "could increase the efficiency and output in professional services, which will in turn boost India's services trade", the report said.

The study, based on stakeholder consultations, key informant interviews and an analysis of trade and regulatory data, said a globally competitive professional services ecosystem could create opportunities for high-skilled employment, entrepreneurship and innovation.

Such reforms could also support India's broader services-led economic growth and help the country increase its share of global professional services exports.

(With inputs from ANI)