Chartered accountants from the UK and Canada might be allowed to practice in India on a reciprocal basis, with the apex body ICAI making the proposal to the government.

ICAI President Ranjeet Kumar Agarwal on Wednesday said the proposal will be implemented strictly on the reciprocal basis that chartered accountants from India will also be allowed to practice in the United Kingdom and Canada.

It will be the first time that an overseas chartered accountant will be allowed to practice in India.

The proposal is part of India's ongoing negotiations for Free Trade Agreements (FTAs) with the UK and Canada.

Agarwal also said that a similar arrangement is being looked with Australia.

Once the reciprocal system is implemented, the chartered accountants from the foreign countries will have to be registered with the ICAI, which will be regulating them.

The Institute of Chartered Accountants of India (ICAI) has more than 4 lakh members and 8.5 lakh students.

Currently, around 42,000 chartered accountants from India are working overseas.

"There is a huge demand for chartered accountants from India," Agarwal, who took over as the President earlier this month, said.

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