NITI Aayog Proposes Regulatory Reforms To Boost Professional Mobility, Ease Licensing And Qualification Recognition

New Delhi, Aug 17 (KNN) NITI Aayog has proposed regulatory reforms to make professional licensing, qualification recognition and mobility across states and international markets easier, with measures covering law, accounting, architecture, engineering, healthcare and allied healthcare.

In its report, ‘India's Services Sector: Insights on Regulatory Regime in Professional Services’, the policy think tank said clearer regulations and greater professional mobility could help India expand its share of global services trade.

The services sector accounted for 55 per cent of India's GDP in 2023-24, while India was the world's seventh-largest services exporter, with a 4.3 per cent share of global services exports. Professional and management consulting services accounted for nearly one-fifth of India's services exports in 2024-25.

Regulatory Gaps Across Professions

The report said professional services in India are governed by diverse, sector-specific regulations. While professions such as medicine, law, accounting and auditing have established statutory frameworks, engineering, landscape architecture and urban planning have relatively limited or fragmented regulation.

NITI Aayog identified barriers related to educational qualifications, licensing, recognition of foreign qualifications, nationality and residency requirements and restrictions on the legal structures through which professionals can operate.

It said excessively restrictive regulations can affect both Indian and foreign service providers and limit the international competitiveness of India's professional services sector.

Healthcare and Engineering Need Greater Clarity

For healthcare professionals, the report highlighted the absence of a nationwide system for portability of licences between states. It recommended interstate licence portability, greater regulatory clarity and timely implementation of the National Exit Test (NExT).

NITI Aayog also called for full implementation of the National Commission for Allied and Healthcare Professions Act to strengthen the regulatory framework for allied healthcare professionals.

For engineering, the report noted the absence of a comprehensive statutory framework governing professional practice, particularly in construction and infrastructure. It proposed a central framework defining professional roles and areas of practice to improve consistency and accountability.

Focus on International Recognition

The report recommended greater use of mutual recognition arrangements to help Indian professionals access overseas markets.

In architecture, for instance, it noted that Indian professionals largely operate through sole proprietorships and partnerships, while countries such as the UK, New Zealand and Singapore permit additional structures, including limited liability partnerships and companies.

The report proposed streamlined registration and licensing, professional examinations, recognition of foreign qualifications and phased accreditation pathways for foreign professionals.

Sector-Specific Reforms

For legal services, NITI Aayog suggested recognising different categories of legal professionals, reviewing rules governing foreign lawyers and law firms, modernising permitted business structures and revisiting advertising regulations.

For accounting and auditing, it recommended stronger regulatory oversight, greater emphasis on skilling, wider mutual recognition arrangements and phased accreditation for qualified foreign professionals.

For architecture, the recommendations include simpler registration procedures, professional examinations and mechanisms to recognise foreign qualifications.

AI, Skills and Professional Development

NITI Aayog identified continuous professional development, adoption of global best practices, strengthening professional services within the wider services economy and responding to emerging trends as four broad priorities.

The report noted that artificial intelligence and automation are reshaping professional services, with growing demand for specialised skills in areas such as engineering design, research and development, technology operations and consulting.

The think tank said regulatory reforms, combined with skilling and professional development, could improve productivity and strengthen India's high-skilled employment, entrepreneurship and innovation potential.

NITI Aayog clarified that the recommendations are intended to guide further policy discussions and are not mandatory. Implementation would depend on decisions by the government and the respective professional regulators.

(KNN Bureau)