Delays and opacity in regulatory clearance can impact timely conclusion of FTAs: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman cautioned that delays in regulatory clearance and opacity in processes can create uncertainty and erode deal value, and has serious connotations for the timely conclusion of FTAs.

Union Finance Minister Nirmala Sitharaman on Tuesday (May 20, 2025) cautioned that delays in regulatory clearance and opacity in processes can create uncertainty and erode deal value, and has serious connotations for the timely conclusion of free trade agreements (FTAs).

This comes at a time when Commerce Minister Piyush Goyal is currently in the U.S. for negotiations on a FTA with that country. Negotiations with the EU and New Zealand are also ongoing in parallel.

Notably, during her speech at the 16th Annual Day function of the Competition Commission of India, Ms. Sitharaman also highlighted the importance of a free and fair market in India and how this benefits the entire economy.

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Her comments come against the backdrop of several customer-centric sectors such as aviation, telecommunications, and food delivery are either already in a duopoly structure or in danger of falling into one.

“In today’s interconnected and fast-paced economy, 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,” Ms. Sitharaman said. “The ability, nimbleness and readiness of the regulators is very keenly watched by investors.”

These aspects of the regulatory framework, she added, have “very serious connotations” when trying to complete FTAs “within a reasonable time”.