Finance Minister Stresses Balanced Regulation For Innovation-Driven, Competitive Economy

The Finance Minister Nirmala Sitharaman on Tuesday underscored the critical role of balanced regulation in fostering a robust and innovation-led economic environment. Speaking at the 16th Annual Day celebration of the Competition Commission of India (CCI), Sitharaman highlighted the need for a regulatory approach that supports both vigilance and growth.

Emphasising the importance of maintaining competitive markets, the Finance Minister said that CCI’s ability to strike a balance between enforcing fair practices and encouraging economic expansion would be vital to building a resilient, equitable, and innovation-focused economy. She added that this approach aligns with India’s long-term vision of becoming a developed nation, Viksit Bharat, by 2047.

Sitharaman, who also heads the Ministry of Corporate Affairs, pointed out the increasing challenges posed by emerging technologies, particularly artificial intelligence. She noted that the rise of AI brings forth complex questions around market dominance, data accessibility, algorithmic fairness, and the broader implications for competition. In this evolving digital environment, ensuring fair play becomes more complex due to the dominance of “gatekeeper” platforms and the global nature of digital business models.

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Digital Markets

The Finance Minister stressed that digital markets must remain free and fair, which necessitates not only domestic regulatory agility but also international collaboration to deal with cross-border digital monopolies.

In her address, Sitharaman also called for a regulatory framework that facilitates quicker approvals for mergers and acquisitions that do not pose a threat to market competition. Currently, deals that exceed certain financial thresholds must receive CCI clearance to ensure they do not stifle competition.

On the occasion, the Finance Minister unveiled a "Diagnostic Toolkit for Public Procurement Officers" and a new set of frequently asked questions (FAQs) regarding combinations, aimed at improving regulatory clarity and assisting stakeholders in navigating the competitive landscape more effectively.

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