Union Finance Minister Nirmala Sitharaman addresses the 16th annual day celebrations of Competition Commission of India, on May 20, 2025. Photo: X/@nsitharamanoffc
Union Finance Minister Nirmala Sitharaman on Tuesday (May 20, 2025) cautioned that delays in regulatory clearance and opacity in processes can create uncertainty and erode deal value, and has serious connotations for the timely conclusion of free trade agreements (FTAs).
This comes at a time when Commerce Minister Piyush Goyal is currently in the U.S. for negotiations on a FTA with that country. Negotiations with the EU and New Zealand are also ongoing in parallel.
Notably, during her speech at the 16th Annual Day function of the Competition Commission of India, Ms. Sitharaman also highlighted the importance of a free and fair market in India and how this benefits the entire economy.
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Her comments come against the backdrop of several customer-centric sectors such as aviation, telecommunications, and food delivery are either already in a duopoly structure or in danger of falling into one.
“In today’s interconnected and fast-paced economy, delays in regulatory clearance can lead to uncertainty, disrupt commercial timelines and potentially erode the intended value of transactions and globally it has an impact, even as we negotiate free trade agreements with different countries,” Ms. Sitharaman said. “The ability, nimbleness and readiness of the regulators is very keenly watched by investors.”
These aspects of the regulatory framework, she added, have “very serious connotations” when trying to complete FTAs “within a reasonable time”.
“So, whether it is litigation, time consumed in litigation, or when regulators are less transparent, negotiations can get complicated,” she noted. “It is therefore imperative that regulatory frameworks, while maintaining rigorous oversight, also facilitate swift and seamless approvals for combinations that pose no harm to competition.”
The Finance Minister also spoke at length about the importance of fostering competition in India, with a key principle being that “markets must work for the many and not just for the few”.
“A free and fair market ensures no single player can corner resources, suppress choice, or to distort price discovery,” she noted. “Competition ensures the voice of consumers, that is the voice of the common people matters and therefore businesses are forced to listen.”
Ms. Sitharaman’s comments come at a time when several sectors are increasingly becoming dominated by just a few players.
In aviation, for example, Indigo and the Air India Group together account for about 85-90% of the market share. In telecom, Reliance Jio and Bharti Airtel together make up about 77-80% of the Indian market. In food delivery, Zomato and Swiggy are the only two large players operating at a nation-wide level.
Published – May 20, 2025 12:42 pm IST