Ahead of the Union Budget, the Institute of Chartered Accountants of India (ICAI) hosts the World Forum of Accountants (WOFA) on January 31st, February 1st, and 2nd, 2025, at Yashobhoomi, New Delhi. Themed “Accountability Meets Innovation (AI): For a Sustainable Planet,” the forum will explore AI-driven strategies to combat climate change, pollution, and resource scarcity. It will emphasize ethical AI development, advocating for responsible practices, robust policy frameworks, and global collaboration. WOFA seeks to inspire sustainable innovation while ensuring AI serves both society and the planet, aligning with the Sustainable Development Goals (SDGs).
In an exclusive conversation with The Interview World, CA. Ranjeet Kumar Agarwal, President of ICAI, discusses WOFA’s transformative impact on accounting practices. He explains how technological advancements will positively disrupt the profession and shares insights into a new certification program launched by ICAI and CPAs. He also outlines key expectations from Union Budget 2025, detailing ICAI’s recommendations to the government. Additionally, he highlights measures to reduce income tax, boost consumption, and drive economic growth, while suggesting reforms to make tax slabs more effective.
Here are the key takeaways from his compelling insights.
Q: Could you provide more details on the World Forum of Accountants event and explain its potential impact on the future of accounting practices?
A: The Institute of Chartered Accountants of India (ICAI) proudly presents the World Forum of Accountants (WOFA), a global gathering of accounting and finance leaders shaping the profession’s future. Under the theme “Accountability Meets Innovation (AI): For a Sustainable Planet,” WOFA will take place on January 31st, February 1st, and 2nd, 2025, at Yashobhoomi, New Delhi. The forum aligns with the Sustainable Development Goals (SDGs), reinforcing the shared responsibility to safeguard both people and the planet.
WOFA will spotlight the intersection of artificial intelligence (AI) and environmental sustainability, exploring AI’s transformative role in tackling climate change, pollution, and resource scarcity. The discussions will center on AI-driven solutions, ethical considerations, policy frameworks, and international collaboration to ensure AI is leveraged responsibly for a greener future.
While embracing AI’s vast potential, the forum will underscore the urgency of ethical AI development. Experts will deliberate on creating regulations, standards, and ethical guidelines that promote responsible AI deployment while mitigating risks. A key focus will be on fostering global partnerships between governments, businesses, and academia to accelerate AI-driven sustainability initiatives.
WOFA will host an unprecedented gathering of 7,000 delegates and 150+ distinguished speakers, including representatives from CPA Australia, CPA Canada, CPA England and Wales, and Singapore. Delegates from 116 countries will engage in two and a half days of insightful deliberations. Adding to the significance of the event, India’s Defence Minister Rajnath Singh will grace the opening session as the Chief Guest, while Vice President Jagdeep Dhankhar will honour the concluding session.
This landmark event will bring together global thought leaders to drive innovation, accountability, and sustainability in the accounting and finance profession.
Q: How is technology poised to disrupt the accounting sector, and is the ICAI prepared to embrace these advancements?
A: Technology is a powerful enabler. It is a disruptive force, but in a way that drives progress. It accelerates decision-making and speeds up information dissemination. However, the true impact depends on how effectively we harness this speed and efficiency. Tasks that once took ten days now conclude in a single day. Yet, leveraging this transformation requires skill and strategic thinking—this is where accountants play a crucial role.
To prepare them for this fast-evolving landscape, we are investing in rigorous, high-impact training programs. Our extensive training ensures they not only adapt but excel in an environment where technology continuously reshapes the profession.
Q: ICAI is planning to launch a certification course in collaboration with CPAs from other countries. Could you provide more insight into this initiative?
A: CPA Canada, CPA England and Wales, and ICAI are in the final stages of developing a certification course, though it has yet to be officially confirmed. This initiative aims to equip three million accountants worldwide with the expertise to report on sustainability funding, integrating both financial and non-financial aspects. India alone accounts for 15% of this global network, representing 450,000 professionals. Once launched, all three million members will have the opportunity to earn this certification through a voluntary process.
Q: What are the key expectations of ICAI from the Union Budget 2025, and what recommendations would you propose for its consideration?
A: Every year, various organizations submit pre-budget memoranda to the ministry. Tomorrow, February 1, 2025, the Finance Minister will present the Union Budget in Parliament. We have also put forward our recommendations, including several innovative proposals. One key suggestion is the introduction of couple filing for tax returns.
We have emphasized the need for tax exemptions in sustainable finance and proposed differentiated depreciation rates for electric vehicles. Additionally, we have advocated for improved access to education loans for women as part of broader women empowerment initiatives. Simplifying litigation remains another crucial area of focus. The Finance Minister has already indicated plans to streamline income tax, and we have reinforced the need for this reform.
Currently, nine crore PAN holders file returns, yet only 1.5 crore individuals pay income tax. We have recommended strategies to expand the taxpayer base and enhance tax outreach. Our proposals aim to create a more inclusive and efficient tax system.
With the economy on an upward trajectory, now is the opportune moment to accelerate growth through well-crafted policies. We are optimistic about a forward-thinking budget that aligns with India’s growth momentum.
Q: What measures can be taken to reduce income tax and stimulate consumption in the economy?
A: Seventy-five percent of taxpayers have already transitioned to the new tax regime, embracing it enthusiastically. With lower tax rates, this framework has gained widespread acceptance. We continue to advocate for this shift, as it reduces deductions while keeping tax rates low.
India’s per capita income currently stands at $2,500. To achieve developed-nation status, this figure must reach $15,000. Bridging this gap requires policies that enhance spending power. The contrast between the propensity to consume and the propensity to save is significant. Young people, in particular, have a strong inclination to spend, fueling demand across sectors.
Infrastructure growth and economic expansion already reflect this spending potential. However, targeted policy changes can further accelerate consumption. As the world’s youngest country, India cannot afford stagnation—driving spending is essential for sustained growth.
Q: What changes would you suggest for the current income tax slabs to make them more effective?
A: We have proposed key reforms, including reducing the number of tax slabs from the existing five and increasing the threshold for non-deductible tax.
