As India is negotiating a trade deal with the US, getting regulatory clearance on time is going to be vital. Delayed regulatory clearance may result in uncertainities and interrupt the commercial project plans, said Financial Minister Nirmala Sitharaman on Tuesday 20th May 2025. She warned regulators that a lack of transparency may reduce transaction value and have major implications for the timely conclusion of Free Trade Agreements (FTAs).
Commerce Minister Piyush Goyal is in the US for negotiations on a Free Trade Agreement (FTA). Negotiations with the EU and New Zealand are also ongoing. FM Sitharaman, during her speech at the Competition Commission of India's 16th Annual Day function, emphasised the importance of a free and fair market for the entire economy.
Advertisement
The comments come amid a looming duopoly in customer-centric sectors like aviation, telecommunications, and food delivery.
“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.”
She stressed the working aspects of the regulatory and emphasised the serious connotations that lack of timely required transparency brings amid the FTA negotiation.
Advertisement
“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.”
Sitharaman emphasised the significance of promoting competition in the country. She stated that markets should work for the many, not just the few. She emphasised that a free and fair market prevents single players from monopolising resources, suppressing choice, or distorting price discovery.
