Domestic Consulting Firms Push for Fair Access in Government Projects

In a bold move aimed at promoting fair competition, Indian consulting firms are seeking a revision of government project norms that currently favour global giants like Deloitte, PwC, EY, and KPMG. This demand for change comes in the wake of a meeting held by the Prime Minister’s Office (PMO) on June 5, where the potential of homegrown consulting companies was discussed.

At the heart of the debate is the Rs 500-crore turnover and 500-employee threshold mandated by agencies like the National Informatics Centre Services Inc. (NICSI). These requirements, domestic firms argue, automatically disqualify even highly capable Indian companies from bidding for consulting projects related to government ministries and public sector undertakings (PSUs).

NICSI operates under the Ministry of Electronics and Information Technology (MeitY) and plays a crucial role in empanelling consulting firms for assignments across central government departments. However, Indian firms say the current framework unfairly tilts the playing field in favour of the Big 4 by focusing solely on revenue and workforce size.

“Domestic firms seek a level-playing field. NICSI currently mandates that only firms with Rs 500 crore turnover and a headcount of 500 people can bid. That creates an artificial entry barrier,” a source told Moneycontrol on the condition of anonymity.

While Indian firms are not asking to exclude global players, they are urging the government to widen the scope and allow more participants into the bidding process. According to industry insiders, reducing the threshold to Rs 25–50 crore would invite greater competition, promote better price discovery, and harness broader Indian talent in public sector consulting projects.

“We are not against the Big 4. But instead of just four dominant firms, why not allow eight or ten? That will only improve efficiency and innovation,” the source added.

This call for reform reflects growing frustration among homegrown firms that feel shut out despite their capability and expertise. These firms argue that they bring local context, cost efficiency, and agility, which are often overlooked due to rigid eligibility criteria based purely on financial metrics.

Many industry watchers believe that competence-led evaluation should be prioritized over revenue-based qualifications. By making the entry norms more inclusive, the government can tap into a wider talent pool, boost domestic entrepreneurship, and reduce overdependence on a handful of multinational firms.

The issue also raises questions about how the government views ‘Make in India’ in the context of knowledge services. While infrastructure, manufacturing, and digital technologies have seen strong policy support, the consulting and advisory space remains heavily dominated by foreign firms, with limited space for domestic players to thrive.

As the conversation gains traction in policy circles, the ball is now in the government’s court. A change in the criteria for empanelment could open the door to a new era of inclusive competition, where both domestic and international firms compete on merit rather than size alone.

This shift could also prove beneficial for the government, enabling better price control, more innovative solutions, and a diversified vendor base for critical policy and implementation projects.

In conclusion, Indian consulting firms are not demanding exclusivity, but equality. Their push for revising the Rs 500-crore turnover rule is not just about numbers — it’s about recognising homegrown capabilities and making government projects more competitive and inclusive.

With the spotlight now on this long-overdue discussion, the coming months may well decide whether Indian firms will finally get the fair shot they’ve been asking for.

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