Regulatory delays can hit trade talks, cautions FM

Finance minister Nirmala Sitharaman has cautioned the country's regulators: foreign investors are watching, and any delays in approvals, lengthy litigation, and transparency gaps can hamper India's ability to strike trade deals in an uncertain global environment.

- Gireesh Chandra Prasad

Making a strong case for avoiding excessive regulation, Sitharaman, who is also the corporate affairs minister, said that regulators must be guided by the principle of 'minimum necessary, maximum feasible' to balance regulatory vigilance with a pro-growth mindset.

In a world facing challenges on multiple fronts, including exports, environment, energy and emissions, increased reliance on domestic growth levers requires ensuring the right balance of regulation and freedom, she said, speaking at the 16th annual day of the Competition Commission of India (CCI) on Tuesday.

The finance minister's message reflects concerns as global trade uncertainty persists even after US President Donald Trump paused his reciprocal tariffs for 90 days, giving trade partners an opportunity to strike deals.

Regulatory uncertainty could add to the risks that global investors may face, especially in capital-intensive sectors.