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Amidst India’s vigorous trade talks with multiple trading partners, Finance Minister Nirmala Sitharaman today said regulatory delays in an “interconnected” world may impact trade negotiations as investors expect prompt regulatory approvals. The minister called for regulatory facilitation while at the same time ensuring tight scrutiny. The finance minister said the rise of cross-border digital monopolies is a challenge.
“We do not want competitive markets to be influenced only by business conduct, but also government policies. Entry barriers, licensing norms, procurement rules can create distortions,” Sitharaman said in her address at the sixteenth annual day of the Competition Commission of India (CCI).
“In today’s interconnected and fast-paced economy, delays in regulatory clearance can lead to uncertainty, disrupt timeless, and potentially erode the intended value of transactions. Globally, it has an impact even as we negotiate free trade agreements with different countries. Nimbleness, and readiness of regulators is very keenly watched by the investors,” she added.
The finance minister called for facilitating approvals to combinations that pose no harm to competition, while ensuring vigorous scrutiny. “Maintaining open, contestable markets to be crucial to our competitiveness as India integrates further with global value chains,” she said.
The finance minister said global competition, and spike in electronic way of doing business, have brought newer technologies as well as challenges. “CCI is facing those challenges very well,” she added. FM enumerated the new challenges that have emerged in the recent years.
“AI technologies raise novel questions about market power, transparency, data access and algorithmic biases, and scope of competitive harm. Free and fair digital markets are challenged by emergence of gatekeeper platforms. Rise of cross border digital monopolies demand global cooperation, and agile regulations,” she said.
The finance minister also pointed out that India's ongoing structural reforms - asset monetisation, disinvestment, DPI - are geared towards unlocking market potential. “Regulators must be guided by principle of minimum necessary, maximum feasible to balance regulatory vigilance with pro-growth mindset,” she added.
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