New Delhi [India], May 20 : Union Finance Minister Nirmala Sitharaman on Tuesday cautioned that delays in regulatory approvals can create uncertainty, disrupt business timelines, and reduce the value of commercial transactions.
Addressing the audience at the 16th Annual Day Celebrations of the Competition Commission of India in New Delhi, the Union Finance Minister said THAT "India's ongoing structural reforms - asset monetisation, disinvestment, and digital public infrastructure - are all geared towards unlocking market potential and deepening competition."
Any delay in regulatory approval are closely monitored by global investors and can influence India's position in ongoing free trade agreement negotiations, highlighting the need for regulatory agility and responsiveness.
"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, because the ability, the nimbleness and the readiness of regulators are very keenly watched by investors," Union Minister for Finance and Corporate Affairs Nirmala Sitharaman said.
Sitharaman further emphasised that while regulatory frameworks must ensure strict oversight, they should also enable swift and seamless approvals for mergers and acquisitions that do not threaten market competition.
Going further, she expressed happiness over the introduction of the 'Green Channel mechanism' by the CCI, which is a trust-based, risk-calibrated approach which allows for automated approval of Combinations that are deemed to have no appreciable adverse effect on competition in order to reduce transaction costs and timelines for benign mergers and acquisitions.
The Union Finance Minister further added that the enactment of the Competition (Amendment) Act, 2023, has been an important landmark in the evolution of competition law in India.
She said that the act is strengthening the Commission's enforcement capabilities while simultaneously creating a more facilitative and transparent regulatory framework.
Sitharaman also praised the CCI's initiative for merger review timelines, adding that the reduced timelines from 210 days to 150 days are enabling quicker regulatory decisions that align with the fast-moving nature of global business transactions.
Sitharaman highlighted that as India integrates further with global value chains and digital ecosystems, maintaining open and contestable markets will be crucial to the competitiveness.
"The Competition Commission of India, through its unique mandate and cross-sectoral role, will be a key enabler in this journey - whether it is facilitating market access for MSMEs, addressing barriers that impede fair competition, promoting digital inclusion, or ensuring that consumers benefit from better choices, lower prices, and improved quality," Union Finance Minister Sitharaman added.
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