Finance and corporate minister Nirmala Sitharaman on Tuesday called on the antitrust watchdog to keep up a balance between regulatory vigilance and a pro-growth mindset, while upholding the principle that “markets must work for the many and not just for the few”.Regulators in general, she stressed, must be guided by the “minimum necessary and maximum feasible” standard in order to ensure this balance.
These regulatory principles will be “integral to building a resilient, equitable and innovation-driven economic framework in India, as it aspires to become a Viksit Bharat (Developed India) by 2047”, the minister said.
Sitharaman was delivering the keynote address at the 16
th annual day function of the
Competition Commission of India (CCI) in the capital.
“In an export-challenged, environment-challenged, energy-challenged and emission-challenged world, the increased reliance on domestic growth levers requires ensuring the right balance of regulation and freedom,” she said.
So, the need for strong, responsive and forward-thinking institutions has never been more vital, she stressed. Evolving challenges globally are changing the nature of the economy itself, she said, citing challenges in recent years, including the pandemic to evolving geopolitical tensions and supply-chains disruption.The CCI’s interventions--whether through enforcement, advocacy, market studies or regulatory reforms—create an environment where enterprises, however small, can compete on merit and where consumers are empowered with choices and by innovation and efficiency, she said.“Ensuring free and fair market is not merely an economic need, it is a democratic one,” Sitharaman said. “Economies that embrace competition are, by nature, more dynamic, and, therefore, CCI plays an important role in this backdrop to keep the competition alive in the markets.”
India's ongoing structural reforms, whether it is asset monetization, disinvestment and digital public infrastructure, all are geared towards unlocking market potential and deepening competition, Sitharaman added.
She also highlighted the need for a “light touch regulatory framework based on principles and trust”, as announced in the latest Budget, to unleash productivity and employment.
Swift regulatory approvals
Sitharaman said regulatory frameworks, while maintaining rigorous oversight, should also facilitate “swift and seamless approvals” for combinations that pose no harm to competition.
Delays in regulatory clearances can lead to uncertainty, disrupt commercial timelines and potentially erode the intended value of transactions, she said.
“Globally, it has an impact even as we negotiate free trade agreements (FTAs) with different countries, because the ability, the nimbleness and the readiness of regulators is very keenly watched by investors,” she said.
“So whether it is litigation, whether it is time consumed in litigation, or whether regulators are less transparent--(FTA) negotiations can get complicated (by these things),” she added.
Presenting the Budget in February, Sitharaman had said: "Requirements and procedures for speedy approval of company mergers will be rationalised. The scope for fast-track mergers will also be widened and the process made simpler.”
Newer competition challenges
The minister dwelt upon the emergence of new challenges in the competition market on top of the traditional ones.
“Free and fair digital markets are challenged by the emergence of gatekeeper platforms, asymmetries in data access and cross border implications of digital business models. The rise of cross-border digital monopolies demands global cooperation and agile regulations,” she said.
