Sitharaman Highlights Need for Regulatory Agility in India's Growing Market

Union Finance Minister Nirmala Sitharaman has warned that delays in regulatory approvals can create uncertainty, disrupt business timelines, and diminish the value of commercial transactions. Speaking at the 16th Annual Day Celebrations of the Competition Commission of India (CCI) in New Delhi, she emphasized that India's ongoing structural reforms—asset monetisation, disinvestment, and digital public infrastructure—are crucial to unlocking market potential and deepening competition.

Sitharaman highlighted how such delays are scrutinized by global investors and can influence India's role in ongoing free trade agreement negotiations. "Delays in regulatory clearance can lead to uncertainty, disrupt commercial timelines and potentially erode the intended value of transactions," she noted. These challenges can also impact international perceptions as India negotiates trade agreements with various countries.

She further emphasized the need for regulatory frameworks to ensure strict oversight while enabling swift approvals for mergers and acquisitions that uphold market integrity. The 'Green Channel mechanism' introduced by the CCI, which allows automated approval for combinations not affecting competition, was praised for reducing transaction costs and timelines.

The Union Finance Minister also hailed the enactment of the Competition (Amendment) Act, 2023, as a landmark in India's competition law evolution. She noted that the act strengthens the CCI's enforcement capabilities and creates a transparent regulatory framework.

Sitharaman welcomed the CCI's initiative to reduce merger review timelines from 210 days to 150 days, aligning regulatory processes with fast-paced global business transactions. As India further integrates into global value chains, maintaining open markets is crucial for competitiveness. Sitharaman asserted that the CCI will play a pivotal role in facilitating market access, promoting digital inclusion, and ensuring consumers enjoy better choices and quality.

(With inputs from agencies.)